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USD/TRY Spikes Higher As East Med Tensions Escalate

TURKEY
  • Local yields open higher this morning in what looks like an idiosyncratic Turkey move.
  • USD/TRY surges 3% higher with limited headlines observed around that time and no changes on the CBRT website to indicate monetary policy tools being used/changed.
  • Initial thoughts are risks surrounding US & EU sanctions on increased tensions in the East Med with Greece.
  • Price action failed to breach 7.50 and the 100dma last week, but price action remains below its 50dma at 7.88.
  • Could also be some knee-jerk profit taking, but will need to see how the move develops through the course of the day.
  • Close above 7.88 may see spot move towards 8.00.- CDS and 1w vols largely unchanged.
  • Greek & Turkish fighter jets confronted each other over the weekend with the Greeks forcing Turkish jets out of its airspace on Saturday as tensions over the East Med escalate ahead of 10 Dec EU summit on Turkey sanctions - Ahval
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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