USD/TRY faces further volatility near term – Danske Bank

Vladimir Miklashevsky, Senior Economist at Danske Bank, recommended a cautious approach to the Turkish Lira.

Key Quotes

“We see more volatility in the TRY in the short term as the Fed is likely to hike in March 2018, becoming more hawkish for the rest of 2018”. We remain cautious in the medium to long term on pressure from a high oil price and widening current account deficit”.

“We keep our USD/TRY forecast unchanged: 3.80 (1M), 3.85 (3M), 4.00 (6M) and 4.05 (12M)”.