We do not view the Lira's rally yesterday as a sign of greater market confidence: it was a typical pause, possibly a clearing of outstanding short positions because authorities are signalling that rate hikes or some combination of policy changes is now imminent.
Beyond the immediate timeframe, we doubt that the market reaction will be too strong, especially if Erdogan keeps reminding markets that he is waiting in the shadows with a skeptical mindset.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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