HSBC's USD/TL Short Position Reached the "Stop Loss" Level

HSBC's USD/TL short position reached the "stop loss" level. The short position taken by the bank with the target of 7.10 in USD / TL in the report published two weeks ago on developing country exchange rates was closed after the Stop Loss level calculated as 7.53 was reached. HSBC's short position in USD / TL in early January closed after the stoploss level was reached. Advising on the sale of USD against Turkish Lira, HSBC opened a short position in USD / TL with the target level of 7.10. In the evaluation, the stop-loss level was announced as 7.53. After the USD / TL regressed to the level of 7.24 in the first week of 2021, it followed a relatively mixed trend and reached the level of 7.5426 on Monday. Thus, "stop loss" position of HSBC worked and the position was closed with the meeting of the determined level. Nominal loss arising from the position was recorded as 1.9 percent. In HSBC's note, it was pointed out that a negative atmosphere prevails in the market perception with the general rise of the US dollar, however, it was pointed out that there is a slight upward acceleration potential in the Turkish Lira in the medium term with the Central Bank maintaining its tight monetary stance. In this report of HSBC, it was stated that in case of a complete normalization, the exchange rate would decrease to the levels of 6.50.