Analysts at MUFG Bank, point out the South African rand (ZAR) has become more closely linked to the performance of the Turkish lira (TRY) providing in a proxy. They maintain a long USD/ZAR trade idea with a target at 18.400. Key Quotes: “The ZAR has become more tightly linked to negative developments in Turkey, and we prefer to use it as a proxy for short TRY exposure. We expect the TRY to remain under downward pressure and view relative stability over the past week as unsustainable. The stealth monetary tightening by restricting access to funding is unlikely to be sufficient to stabilize the TRY. The main risk to the trade idea is that the ZAR has already moved along way since late last month. It increases the risk of a short-term squeeze of long positions.” “One potential downside trigger would be if the CBoT acted decisively and raised rates significantly to offer more support for the TRY. An extension of broad-based USD weakness would also work against the trade idea.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next S&P 500 top movers: DXC Technology Co (DXC) gains more than 4% as top-performer FX Street 2 years Analysts at MUFG Bank, point out the South African rand (ZAR) has become more closely linked to the performance of the Turkish lira (TRY) providing in a proxy. They maintain a long USD/ZAR trade idea with a target at 18.400. Key Quotes: “The ZAR has become more tightly linked to negative developments in Turkey, and we prefer to use it as a proxy for short TRY exposure. We expect the TRY to remain under downward pressure and view relative stability over the past week as unsustainable. The stealth monetary tightening by restricting access to funding is unlikely to be sufficient… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
