Economists at Société Générale expect USD/TRY to stay above the 8.26. A break above the July peak of 8.74 is key to see additional gains towards the 8.95 level.
Deeper pullback not expected while above 8.26
“A phase of consolidation is under way; the pair recently defended the lower limit of its range near 8.26. So long as this remains defended, a deeper pullback is not expected.”
“Test of the lower band has resulted in a bounce and the pair could head towards the July peak of 8.74. This remains an interim hurdle.”
“Overcoming the July high of 8.74 can result in the next leg of up move towards 8.80 and projections of 8.95.”
“Our USD/TRY forecast is 9.15 by year-end.”