USD/TRY seen above 3.00 in a year’s view – Danske Bank

According to analysts at Danske Bank, the Turkish Lira is expected to depreciate further within a year’s view.

Key Quotes

“We raise our TRY forecasts as Turkey’s President Erdogan apologises to Russia’s President Putin on downing Russian jet in November 2015 causing rally in TRY and Turkish stocks”.

“We see additional support for the TRY as this is the first step towards normalisation of relationships with Russia, which should support the Turkish economy in the long term”.

“We are also more positive on TRY than before the UK referendum due to markets’ increased expectations on a dovish Fed after the Brexit vote: 2.95 in 1M (previously 2.98), 2.98 in 3M (previously 3.03), 3.03 in 6M (previously 3.05) and 12Mat 3.05 (previously 3.12)”.