The Turkish crisis: a temporary halt or return to normal?
On Tuesday, the fall of the Turkish lira has stopped and there has been some recovery. The media write about some Turkish companies particularly, Vakifbank TAS and Turkcell AS. They bought their significantly cheaper bonds from the market, although this is a small amount of $10-15 million.
The head of Turkey, Erdogan, in response to unfriendly US actions where Trump introduced duties against Turkish steel and aluminum, called for a boycott of electronics produced in the US. it is primarily about Apple products - iPhone. Erdogan called for switching to Samsung products or Turkish Vestel.
Now, it is difficult to say whether Turkey will manage to avoid a new wave of sales of the lira but the first stop is a positive signal.
This may be a signal for the recovery of the euro after a strong fall. It is the decline in lira and risks for several banks in the euro area that have loans to Turkish borrowers in the portfolio, led to a fall of the euro against the dollar below 1.1500.
On Tuesday evening, the EUR/USD exchange rate is trading at about 1.1380 and, perhaps, will make a breakthrough attempt at 1.1360.
The material has been provided by InstaForex Company - www.instaforex.com