Exotic Carry Trade - Bullish Looking Lira

Discussion in 'Forex' started by DannyBly1, Jun 18, 2008.

  1. The Turkish Lira (TRY), offers the highest interest rate in the industrial world (16.25%) while borrowing the USD will only cost you 2.00%. Selling USD/TRY will yield you the hefty interest rate differential of 14.25%. And that's without using any leverage.

    Technically we are starting to have a decent case for selling USD/TRY. On the daily chart, the 50 and 200 period moving averages look poised to cross over, we have a bearish MACD crossover, and the uptrendline marked in green on the chart has been violated and should provide some resistance to the upside.

  2. Yeah, if you can get past the political bullshit in Turkey at the moment with the ruling party.

    That crap is what's preventing Turkish investment. That, and a massive deficit.