Goldman Sachs raises Turkiye 2022 GDP growth forecast to 5.5% from 3.5%

Anil Panchal FXStreet

Goldman Sachs (GS) said on Thursday it had raised its forecast for Turkey's 2022 GDP growth to 5.5% from 3.5%, while lifting its 2022 current account deficit forecast to $45 billion from $36 billion, per Reuters.

The news also adds that the GS said the Turkish Central Bank's forex reserves had risen sharply since the third week of June and that, with less of an external funding constraint, it was updating its macro forecasts and market views.

Key quotes

The additional funding implies that the need to tighten policy to avoid an external funding gap has declined substantially, and we think policymakers will use this space to support growth.

Data on Wednesday showed Turkey's economy grew 7.6% year-on-year in the second quarter as expected, extending a hot streak on strong domestic demand and exports.

Also read: USD/TRY finally reaches 18.20 and beyond, new 2022 highs

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold slumps below $5,100 as US Dollar gains

Gold price tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar. The US employment report for February will take center stage later on Friday.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.