16 Jun 2015
Politics to keep weighing on TRY – Danske Bank
FXStreet (Edinburgh) - Vladimir Miklashevsky, Economist at Danske Bank sees the Turkish political scenario a key driver for the lira.
Key Quotes
“Lira sentiment has been more politically than fundamentally driven since the beginning of 2015”.
“As the president’s party has lost the majority in the parliament, it will ease pressure on the central bank and in the long-run solid fundamentals will prevail in the impact on the lira”.
“The current account deficit is shrinking on the low oil price. We continue to expect the lira to weaken in 3M, but strengthening in the longer run. Hence, we have raised our 1-3M forecasts but lowered our 6-12Mforecasts”
Key Quotes
“Lira sentiment has been more politically than fundamentally driven since the beginning of 2015”.
“As the president’s party has lost the majority in the parliament, it will ease pressure on the central bank and in the long-run solid fundamentals will prevail in the impact on the lira”.
“The current account deficit is shrinking on the low oil price. We continue to expect the lira to weaken in 3M, but strengthening in the longer run. Hence, we have raised our 1-3M forecasts but lowered our 6-12Mforecasts”