The Central Bank of Turkey surprised markets with a 100bps cut to 13%. It also signalled it intends to promote the use of the lira in the Turkish economy. Rate cuts have run concurrently with a spike in Turkish inflation, pointing to political interference as the country's bizarre monetary policy continues. In response to the rate cut, the USDTRY has spiked to 18.0904, up almost 0.85% from its open of 17.9404. Given the rampant global inflation rate, USDTRY is at real risk of capitulation, promoting rampant inflation, due to this strange loosening of monetary conditions.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.