18 Aug 2015
TRY seen at 2.70 in 12-month – Danske Bank
FXStreet (Edinburgh) - Vladimir Miklashevsky, Strategist at Danske Bank, believes the Turkish currency could appreciate towards the 2.70 area in a 12-month horizon.
Key Quotes
“Since the beginning of 2015 lira sentiment continues to be more politically than fundamentally driven with it worsening the most in early August as the prime minister declared he is not excluding early elections”.
“The current account deficit continues to shrink owing to the low oil price. Even so, we expect the lira to weaken in 3M, but to strengthen in the longer run as Fed hikes are priced in”.
“Consequently, we have raised our 3M forecast to 2.92 (from 2.80), 6M to 2.80 (2.65) and 12M to 2.70 (2.60)”.
Key Quotes
“Since the beginning of 2015 lira sentiment continues to be more politically than fundamentally driven with it worsening the most in early August as the prime minister declared he is not excluding early elections”.
“The current account deficit continues to shrink owing to the low oil price. Even so, we expect the lira to weaken in 3M, but to strengthen in the longer run as Fed hikes are priced in”.
“Consequently, we have raised our 3M forecast to 2.92 (from 2.80), 6M to 2.80 (2.65) and 12M to 2.70 (2.60)”.