USD/TRY seems to be on an invisible string that may snap any day – Rabobank

Amid rising geopolitical risk associated with developments in Syria, Piotr Matys, Senior Emerging Markets FX Strategist at Rabobank, offered a brief outlook for the USD/TRY cross.

Key quotes:

“USD/TRY seems to be on an invisible string attached to the 6.00 level. The string has been stretched so far to an intraday high of 6.0658 set on Wednesday and has not snapped. That said, rising geopolitical risk associated with developments in Syria where the Turkish troops seem to be on a collision course with forces loyal to Syrian President Assad may finally push the string beyond its limit. When it snaps, USD/TRY is likely to shoot towards the May 2019 high at 6.2457.”