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Turkey: Emergency rate hike? - Rabobank

After the selling pressure on the lira resurfaced following a very brief period of stabilisation, Governor Cetinkaya may have to hold an emergency meeting to deliver a proper dose of monetary policy tightening, according to analysts at Rabobank.

Key Quotes

“Allowing the lira to fall precipitously would not only prolong the period of a double-digit inflation, it could also negatively affect sentiment amongst households and corporates leading to a sharp slowdown in economic activity.”

“Given the substantial external liabilities of Turkish companies, which borrowed extensively in hard currencies due to the significant interest rate differential, a weaker lira could cause a financial crisis in the worst case scenario.”

US Dollar rebounds from lows near 92.40 on Payrolls

After an ephemeral test of lows near 92.40 in the wake of Non-farm Payrolls, the US Dollar Index (DXY) retakes the 92.50 region. US Dollar within ran
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EUR/USD falls towards 1.1900 handle post-NFP

The EUR/USD is trading at around 1.1920 down 0.56% on Friday.  The US Non-Farm Payrolls report for April was a disappointment on the headline with on
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