19 July, AtoZForex – Last week the world witnessed a tragic event of a military coup attempt in Turkey. Aside the dead casualties of at least 290, the number of wounded persons is estimated at 1,400 after the night of violence. However, there is always the flip side of the coin, as this type of news affects the market currencies fluctuations, especially for USDTRY. On the night of the tragic event, Turkish residents flooded the ATMs with fear. Meanwhile, USDTRY soared by 5% on Friday night, hitting the highest level since January 2016.
Following the horrid military coup attempt in Turkey of last Friday, many of our readers have asked us about the influence of the failed coup on USDTRY and how the market openings of various markets will be like. Therefore, AtoZForex has reached out to George Pavlopoulos, for Magna Trust TRY analysis after the drastic events.
Magna Trust TRY Analysis
We have received the following comment on the Turkish Lira from George Pavlopoulos, Vice President & Senior Fund Manager at Magna Trust:
Due to the fact that the coup took place during Friday’s night – i.e. simultaneously with the closure of the markets – the range of the opened positions both in terms of quantity as well as of nominal value – was pretty much limited. We can clearly state that is was almost trivial.
In the aftermath of the events in Turkey, we stand pat on our existing policy. Being more precise, we did change nothing. We do not feel any harassment or worry to alter anything, that’s why we will not proceed with any kind of change in the margin requirements.
Grabbing the opportunity given – pertaining to our risk management system – we would like to express our opinion pertaining to TRY crosses.
We do consider that in case of any further depreciation of TRY (i.e. upwards movement of USD/TRY, or EUR/TRY), investors should buy TRY i.e. short the crosses (EUR/TRY, USD/TRY).
Elaborating on, we would be strongly buyers in TRY, i.e. strongly short the EUR/TRY near the levels of 3.35-3.40.
To put it briefly, we believe that any further depreciation of TRY will be really short-lived, thus, we sit on the fence waiting to cease any kind of opportunity seeing TRY crosses higher, in order to sell them (i.e. sell the crosses -EUR/TRY or/and USD/TRY, therefore purchasing TRY).
Thank you for your time and input George Pavlopoulos. Despite the tragic news, AtoZForex has been on top of the developments and reports about the market through the LIVE Turkey coup impact post.
More information will follow…
AtoZForex’s investigation into the Turkey Coup Risk Management precautions of other brokers continues. As we’re still contacting other brokers to get you the information you need to be able to trade safely and securely. Check if your broker has already disclosed their risk management precautions onTurkish Lira Trade Restrictions list. If not, then immediately contact your broker for an update on what their precautions are.
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