The Bank of Turkey will have its policy meeting on November 23, 2023. Whatever the outcome, I expect it to be good for the USD. Therefore, I am long now and will hold this pair through the meeting and beyond.
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The outcome was still good for the USD.
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Remaining long...
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"President Recep Tayyip Erdogan who was reelected in May, reversed his unconventional policies." This is one of the catalysts that triggered a "currency crisis and drove up the cost of living, leaving households struggling to afford basic goods." (abcnews.go.com/Busin...ed-pausing-107441035)
This caused the former central bank governor, Hafize Gaye Erkan, to move the interest rate from 8.5% in June 2023 to 45% in January 2024. The central bank decided to keep rates the same in February 2024.
"Despite the series of hikes, inflation remains high — consumer prices rose nearly 65% in January." (ibid)
Key terms to watch out for: central bank's views and potential anticipation on inflation and consumer prices.
This caused the former central bank governor, Hafize Gaye Erkan, to move the interest rate from 8.5% in June 2023 to 45% in January 2024. The central bank decided to keep rates the same in February 2024.
"Despite the series of hikes, inflation remains high — consumer prices rose nearly 65% in January." (ibid)
Key terms to watch out for: central bank's views and potential anticipation on inflation and consumer prices.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.