The outlook for TRY remains negative – Danske Bank

FXStreet (Edinburgh) - Vladimir Miklashevsky, Economist at Danske Bank, gave his views on the Turkish currency in the medium term.

Key Quotes

“Lira sentiment remains negative and the lira continues to offer carry”.

“Pressure on the central bank to ease in 2015 is lira negative in the medium term in our view”.

“We continue to expect the lira to weaken over the coming year, while the sell-off may accelerate in autumn if the Fed hikes”.

“Yet, we expect more moderate weakening than the forward curve suggest due to improving macro fundamentals of the Turkish economy”.