TRY soars ahead of Erdogan's cabinet announcement

Increased risk appetite in conjunction with an expected Erdogan's new cabinet announcement pushes the Turkish lira higher on Monday. The announcement is to be released this evening when Recep Erdogan is sworn in, and it should result in a massive cut of members of Erdogan's cabinet (from 27 to around 16). Let us recall that Erdogan gained a landslide victory in the presidential election two weeks ago. Since then, the TRY has appreciated to some extent, however, the latest inflation data (above expectaions) exerts further pressure on the CBRT to continue raising rates (the next meeting takes place on 24 July). As of 1:18 the lira is trading 1.2% higher against the US dollar.