
Yes, oil prices are burning right now, and inflation is getting hotter along with it worldwide. However, the oil's bullish momentum is under threat.
2019-11-11 • Updated
Turkish lira made a spectacular decline during the recent trading days. USD/TRY came close to 5.00. It looks like it will be the worst month for the Turkish currency since the global financial crisis of 2008. Since the start of 2018, TRY fell by more than 20% versus the US dollar. Notice that the lira crashed against the euro as well: EUR/TRY reached 5.76.
The main reason why the TRY collapsed because of statements of President Recep Tayyip Erdogan. Erdogan said on Tuesday that he wanted to take more responsibility for monetary policy in the country after his expected re-election on June 24. It means that the President wants to completely diminish the role of the country’s central bank. In his opinion, interest rates in Turkey should be lower, and lower rates, in turn, represent a negative factor for the TRY.
Erdogan's desire to keep rates low can make Turkey face serious economic problems. High oil prices hurt the economy. Turkish inflation exceeds 10%. Investors’ confidence in the country is already very low. High risks make them turn away from Turkish assets to other markets. The world’s top ratings agencies already expressed concerns with the situation.
It’s clear that the overall uptrend in USD/TRY will continue in the medium term. The US dollar is rising not only versus the lira but against other currencies as well.
At the same time, the crash of the lira made the Central Bank of the Republic of Turkey hold an extraordinary meeting and raise interest rates even before the next meeting June 7. The regulator raised rates by 300 basis points.
Turkish central bank had to call an emergency meeting and raise interest rates
USD/TRY reacted to the news and finally started declining. The pair’s overbought on all timeframes and may temporarily slide lower. Support is at 4.50. To restore confidence in the lira, the country’s officials should also make some encouraging comments to calm down the market.
In any case, it’s worth remembering that Forex trading with FBS allows benefiting during the times of high volatility. Use this chance to make money!
Yes, oil prices are burning right now, and inflation is getting hotter along with it worldwide. However, the oil's bullish momentum is under threat.
What is happening? The Russian president's announcement that countries "unfriendly" to Moscow must pay for gas deliveries with rubles shows that he's willing to use energy as a weapon in the Ukraine war…
A month after Russia invaded Ukraine, oil markets are still more volatile than ever, with little clarity on how the sanctions will affect Russian crude production as well as global oil demand.
Crash of LUNA ecosystem and halving cycles. Glimpse into the future of the crypto market with FBS experts!
Last week blew traders' minds! The US dollar dropped for the first time in seven weeks after Jerome Powell's speech on Tuesday…
The pandemic continues hurting economic activity in China, the war in Ukraine is hitting the entire European economy, and the Fed's efforts to control inflation threaten to trigger a recession.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.