OctaFX | OctaFX Forex Broker
Open trading account

Turkey: Erdogan puts lira under strain – TDS

Piotr Matys, an strategist at Rabobank predicts the USD/TRY pair will have difficulties to keep the 6.00 level after an escalation of tensions between Turkey and Syria. 

Key quotes

“The Turkish lira remains in the spotlights due to rising risk of a full-scale military conflict between Turkey and Syria. President Erdogan vowed to push forces loyal to Syrian President Assad from Syria’s north-western province of Idlib. `No one is safe if blood of Turkish troops are spilled`, President Erdogan said.”  

“A full-scale military confrontation between Turkey and the Assad regime – supported by Russia – would substantially increase upside pressure on USD/TRY. Should such a negative scenario for the lira unfold, state banks would struggle to keep USD/TRY anchored to the 6.00 level. They have been intervening on behalf of the central bank allegedly selling more than USD 4bn throughout last week. Yet, it proved insufficient to keep USD/TRY below the psychological level of 6.00 that was finally breached on Friday.”


GBP/USD Price Analysis: Bulls might now aim toward the 1.30 confluence hurdle

The GBP/USD pair built on this week's recovery move from 2-1/2 month lows and edged higher for the third consecutive session on Wednesday. The overnig
Read more Previous

BoE's Woods: Risk of disruption to small payments after Brexit transition period

Sam Woods, deputy governor of the Bank of England, said they are "cautiously optimistic" that the EU will continue to facilitate cross-border derivati
Read more Next
Start livechat