Parabolic moves in USD/RUB and USD/TRY - Rabobank

Hawkish rhetoric from Russian ambassador to Lebanon, who warned that any US missiles fired at Syria will be shot down and the launch sites will be targeted, squeezed USD/RUB to yet another year-to-date high this morning, points out the research team at Rabobank.

Key Quotes

“While the next important level is at around 65.50 followed by 67, technical pivots are likely to prove irrelevant if geopolitical tension continues to escalate. Essentially, USD/RUB would rally well above any major technical level should US President Trump decide to launch a strike on Syria. On Monday he said that the decision will be made “very quickly.”

“In Turkey, we are witnessing a vicious cycle of a weaker lira undermining confidence amongst investors as reflected in the sharp fall in Turkish stocks and bonds. This in turn could trigger substantial capital outflows and lead to even stronger selling pressure on the lira.”