Turkish inflation momentum is not recording noticeable deceleration any longer, except in (misleading) year-on-year comparison, Commerzbank's FX analyst Tatha Ghose notes.
Turkey's current account significantly deteriorated in June, registering a deficit of $2.0 billion (versus a $680mn deficit recorded a month ago, and surplus recorded a year ago); the print exceeded analyst expectations of $1.3bn deficit.
The Turkish Lira (TRY) exchange rate remains on a steady depreciation path, especially against non-USD currencies. Against a 50-50 basket (USD and EUR), its depreciation rate is quite rapid –c.43% annualised.