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USD/TRY remains on the bullish side – Rabobank

FXStreet (Edinburgh) - Strategist Piotr Matys at Rabobank sees the pair testing higher levels in the near term.

Key Quotes

“Unless the Fed changes its course and hints that more stimulus is more likely scenario than a hike (Q4 is our in house view), USD/TRY will remain in a well-established upside trend throughout this year”.

“Any correction caused by less hawkish than expected message from the Fed should be short-lived”.

“With the ECB injecting EUR 60bn per month, it is difficult to expect EUR/TRY to revisit the all time high at 3.2726 with gains capped below the monthly tops at 2.925~ set in 2014H2”.

“Unfavourable domestic factors with focus on the CBRT and the upcoming general elections should keep EUR/TRY above the year-to-date low at 2.6065 set in January”.

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