Currency Analysis Report 9/21/20 - Will The Turkey Lira Ever Find It's Footing???

An emerging market is a country that doesn’t have all the characters of a developed market. Characteristics of emerging markets are unstable governments, high or low inflation, shaky monetary policies, etc. When it comes to Turkey, plunging reserves and a lack of economic policy tightening are contributing to the uncertainty in Turkey.

Other concerns over the Lira collapse include, the Turkish economy, the unwillingness of Turkish authorities to raise interest rates and Eurozone's economic ties to Turkey. The Turkish president, Recep Tayyip Erdoğan, has even called on Turks to sell dollars and euros to support the national currency. Despite the slump in price of Bitcoin, back in late 2018,
devaluation of the Turkish Lira, forced citizens to flock towards Bitcoin investments.

But this year has been no different than 2018 for the Lira.

Most developing world stocks and currencies fell on Monday as a rise in domestic COVID-19 cases and fears over another lockdown in Europe hit risk appetite, with the Turkish lira plumbing new lows as focus turned to a central bank meeting this week.

The lira slid for the seventh straight session to an all-time low of 7.59 against the dollar by 0838 GMT on expectations the central bank would stand pat but continue its back-door tightening measures at the end of its policy meeting on Sept. 24.

Concerns over depleted forex reserves, negative yields due to high inflation, and tensions with the European Union over the east Mediterranean have pushed the lira down over 20%, making it one of the worst performing currencies this year.

So where is the Lira heading next, lets go to the charts to find out?

Monthly Chart (Curve Timeframe) – monthly demand is at 6.75000.

Weekly Chart (Trend Timeframe) – the trend is up.

Daily Chart (Entry) – the chart suggests to go long on a pull back to the daily demand at 7.39000.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance