25 Mar 2015
Negative perspective for the Turkish lira in the short term – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Christin Tuxen at Danske Bank sees the lira suffering the political effervescence in Turkey, although its stance could get better in the longer run.
Key Quotes
“Within the EM region we are increasingly worried about political developments in Turkey”.
“It is now likely that Turkey’s governing party, AKP, could split into more parties: while this could eventually be a welcome development for international investors as it may put Turkey back on the reform path, for now, the internal and increasingly open battle within the AKP is a clear negative for Turkish markets”.
“Thus, this is not the time to buy TRY but on a six- to 12-month horizon we are fairly upbeat on the currency”.
Key Quotes
“Within the EM region we are increasingly worried about political developments in Turkey”.
“It is now likely that Turkey’s governing party, AKP, could split into more parties: while this could eventually be a welcome development for international investors as it may put Turkey back on the reform path, for now, the internal and increasingly open battle within the AKP is a clear negative for Turkish markets”.
“Thus, this is not the time to buy TRY but on a six- to 12-month horizon we are fairly upbeat on the currency”.