Exotic currency pairs, including the British pound against the Turkish lira provide attractive investment opportunities for forex traders as well as the major currencies dominating the market. The GBP is on of the world’s major currencies whilst the TRY is one of the world’s more exotic currencies. Offering a more volatile, but less liquid environment, the Pound Sterling against Turkish lira coupling may become a pair of choice for many CFD traders.
GBP/TRY currency pair tracks the price of the British pound (the base currency) against the Turkish lira (the counter currency). In other words, it shows how much the GBP is worth as measured against the TRY. As of 2 October 2019, the GBP/TRY price rate is traded at $7.02.
Trade British Pound / Turkish lira CFD
According to the latest news, the British pound was in retreat on Friday, September 27, as Michael Saunders, an external member of the Monetary Policy Committee at the Bank of England (BoE) shared in an official speech that interest rates might be cut in the upcoming months even in case the UK manages to avoid a ‘no-deal’ Brexit.
The BoE’s representative pointed out that a continuing global economic slowdown and persistently high Brexit uncertainty seem likely to continue depress UK growth below its potential. Experts believe, these events may trigger further decline in GBP rate in the middle of October.
On the last days of September, Sterling was falling against most major and minor currencies amid growing political tensions and rising expectations for early UK elections. However, a number of analysts express optimistic views on British pound’s long-term potential.
At the same time, Turkish Lira has been facing a surprising support, after the International Monetary Fund (IMF) revised its growth forecasts for Turkey higher. Under the IMF’s outlook, fresh stimulus including an expansionary fiscal policy may result in a rebound in the GDP growth by 0.25% instead of a previously projected 2.5% contraction by the end of 2019.
Lira has been recovering from a sharp depreciation in late 2018. However, without a comprehensive package of reforms, its medium-term growth is likely to be subdued.
Another event, that is capable to move Lira higher is a possible US-Turkey trade package. If a trade deal between the two countries appear likely, the Turkish lira will extend its momentum.
GBP to TRY forecast
According to the Walletinvestor.com, the Pound/Turkish lira forecast is considered a good long-term investment. The forex rate prognosis for September 2024 is 13.971. Therefore, if you decide to invest today, you may expect to get the revenue of +98.59%.
Here is the GBP/TRY forecast for the next couple of years:
Pound Sterling to Turkish Lira Forecast 2019, 2020, 2021
The long-term Pound/Lira forecast for the end of 2019 and 2020 also looks positive:According to the analysts from Gov Capital, British Pound vs. Turkish Lira may fit your investment portfolio as a bullish market in 1 year perspective. The GBP/TRY future currency rate is predicted at 12.028 (+26%) by October 2020.
What you need to know about GBP/TRY investing
Although, the GBP/TRY is considered an exotic currency pair, it may attract investors' attention due to its high volatility. The potential for significant shifts in value makes pairs like GBP/TRY popular among CFD traders, looking for opportunities to increase profits.
To better understand what affects the GBP/TRY rate and make thorough trading decision, you should consider some key drivers that can boost extreme British pound/Turkish lira moves:
The GBP/TRY rate highly depends on the interest rate decisions, made by the Bank of England (BoE) on the one hand and the Central bank of Turkey on the other hand
Other important factors, which have a significant impact on the GBP/TRY include Brexit uncertainty, global economic slowdown and the US-Turkey trade relations.
With contracts for difference, it does not matter whether your view of the GBP to TRY forecast is positive or negative. You can always try to profit from the future price fluctuations, regardless of their direction. Please note that in case of leveraged products like CFDs, gains, as well as losses can be magnified.
Learn more about CFD trading with free online courses and stay tuned with the pound to lira live rates with Capital.com.