EURTRY - Inflation Beast is Back EURTRY :
Our first idea/post was on the Epic rebound of the Turkish Lira back in Dec 21st /2021
We had then calculated and prognosed with great precision the levels (rise to 15,7) :
The price has done us the favor then and normalized/consolidated around that level (15,7) :
At this stage, Central bank has kept the lira's rates unchanged (good news because every time they intervene there is panic amongst Turkish citizens and Lira holders) but Inflation is a BEAST out of control:
Turkey’s inflation rate soars to almost 70 percent : www.aljazeera.com
Turkey's role in the Ukraine crisis is something Erdogan can use nicely as long as he can balance between a 'neutral stance' with doors open to Russia and still in Nato' and part of the Western front. If the West wishes to shift him on one side though the Turkish lira might end up under severe pressure again.
Don't forget that there are elections next year and Erdogan is probably not feeling the safest at this moment.
Let's hope everything goes well in the world as well as in Turkey and that Turkey can play a peaceful role in ending the war in Ukraine.
This will be interesting to see.
One Love,
the FXPROFESSOR
