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TRY Volatility Persists Ahead of EU Summit

TURKEY
  • Local rates open firmer this morning after sustaining losses since the start of the week.
  • 5, 7 & 10Y tenors outperforming in line with marginally more positive risk sentiment.
  • USD/TRY continues to open higher at the fix, but has been met with selling pressure on moves towards 7.85 and above.
  • Choppy trading is likely to persist ahead of the EU summit with moderate sanctions expected to be imposed on Turkey.
  • Political risk premium should largely be baked into USD/TRY.
  • However, signs of harsher sanctions may add upside pressure on spot.
  • For now the 7.75-7.92 range is holding with most of the sell-side still favouring shorts.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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