30 Jan 2015
USD/TRY vigilant on dollar and oil prices – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Lars Christensen argued the Turkish lira could find support in the upcoming periods.
Key Quotes
“The Turkish economy has been showing quite clear signs of slowing over the past couple of years and recently there have been further signs of growth deceleration”.
“Recently Turkish inflation has been coming down on the back of lower energy prices and lower clothing prices and we now expect inflation to decline further in 2015”.
“This could open the door for monetary easing but we would expect the Turkish central bank to be quite cautious going forward”.
“The strengthening of the US dollar is clearly a risk to the lira. Furthermore, the increased military fighting close to the Turkish-Iraq border and the general increase in geopolitical tension in the region is becoming an increasing risk for the lira”.
“Continued fairly high inflation and a large current account deficit are likely to continue to weigh on the lira over the longer term”.
Key Quotes
“The Turkish economy has been showing quite clear signs of slowing over the past couple of years and recently there have been further signs of growth deceleration”.
“Recently Turkish inflation has been coming down on the back of lower energy prices and lower clothing prices and we now expect inflation to decline further in 2015”.
“This could open the door for monetary easing but we would expect the Turkish central bank to be quite cautious going forward”.
“The strengthening of the US dollar is clearly a risk to the lira. Furthermore, the increased military fighting close to the Turkish-Iraq border and the general increase in geopolitical tension in the region is becoming an increasing risk for the lira”.
“Continued fairly high inflation and a large current account deficit are likely to continue to weigh on the lira over the longer term”.