Emerging Markets Cross-Asset Strategist, Emvest Partners

Guillaume Coutant

Emerging Markets Cross-Asset Strategist

Technical Analysis

Turkey monetary policy will remain tight if inflation starts to slow down, as first figures seems to be proving. This will increase demand for TRY-denominated bonds, therefore supporting the currency appreciation started in January 2017.Political turmoil seems behind since the referendum and Erdogan current behavior towards the Central Bank is not as aggressive as one may have anticipated.Carry trade on the currency is highly positive, and technical elements advocate for a new TRY appreciation…

Turkey monetary policy will remain tight if inflation starts to slow down, as first figures seems to be proving. This will increase demand for TRY-denominated bonds, therefore supporting the currency appreciation started in January 2017.Political turmoil seems behind since the referendum and Erdogan current behavior towards the Central Bank is not as aggressive as one may have anticipated.Carry trade on the currency is highly positive, and technical elements advocate for a new TRY appreciation…

TRY

Turkish Lira : Appreciation Expected