FxWirePro Call Review: USD/TRY reaches bullish target; further extended to 5.8 area

In late April, in an article named, “FxWirePro: Turkish Lira to depreciate another 10 percent against USD”, available at https://www.econotimes.com/FxWirePro-Turkish-Lira-to-depreciate-another-10-percent-against-USD-1276314 we suggested that Turkish lira, which,

“After bottoming around 4.07 area against the USD in December 2016, Turkish Lira continued to strengthen on the back of a weaker dollar and in July last year it reached as high as 3.88 per USD. However, as the domestic inflation rate adds pressure on the central bank to raise rates further, which has already been pushed to 8 percent and as Turkey’s relations with the other NATO members, as well as the European Union worsens Lira has steadily been weakening and earlier this month reached as low as 4.19 per USD.”

In our next follow up review, https://www.econotimes.com/FxWirePro-Call-Review-USD-TRY-nears-target-target-extended-to-463-1313334 we extended the target to 4.63 per USD and then finally to 5.03 per USD.

This week, Turkish Lira has reached our anticipated bearish target as the United States has threatened to impose sanctions on Turkey, if a U.S. pastor, who has been in Turkish Jail for the past two years and was recently moved to house arrest over his alleged role in the Turkish coup.

Based on our latest calculations, we would like to extend our bearish target for Turkish Lira from 5.03 per USD to 5.8 per USD.