RE:RE:USD/lira breakoutOr......
Turkish Lira Can Strengthen to 5.10/USD This Year: Credit Suisse
2018-11-07 16:03:26.104 GMT
By Aline Oyamada
(Bloomberg) -- Demand for the Turkish lira is expected to
remain firm until the end of the year, as risks associated with
inflation and external debt rollover are unlikely to weigh on
the currency, according to Credit Suisse.
* This is because next inflation print is only due in early
December and credit spreads normalized, strategist Nimrod
Mevorach writes in a note
* “The decline in USDTRY as such improves the inflation outlook
and allows investors to accept a period with low real rates on
an ex-post basis (as long as they are confident that inflation
will fall in a meaningful way down the line). These dynamics are
powerful at this point for the lira,” strategist writes
* A market-friendly resolution of the pending Halkbank case,
which is Credit Suisse’s base case, could revive inflows into
equities and help the Turkish lira to strengthen to the 5.10 to
5.15 per dollar level by the end of the year