HSBC Says It Ended Lira Recommendation on Greek Polls

Updated on

HSBC Holdings Plc ended its short long dollar, long lira trade recommendation as Greece’s political and debt crisis deepened, the lender said.

The bank opened a short dollar versus long lira recommendation at 1.81 with a target of 1.74 on March 22, Murat Toprak, London-based head of the bank’s currency strategy for Europe, Middle East and Africa, said in an e-mailed note dated May 16. The lender closed the recommendation at 1.83 for a nominal loss of 1.1 percent.

The Turkish currency lost 1.9 percent against the dollar over the past five days as Greece heads toward national elections after the inconclusive May 6 polls pushed a political party opposed to Greece’s international bailout into second place, raising the specter of Greece exiting the euro.

“The trade has initially performed well, approaching the target,” Toprak wrote. “However, we have decided to exit the trade as the Greek crisis has changed the panorama.”

(Corrects to show that HSBC made a recommendation rather than a trade in the headline and second paragraph of story published on May 17.)
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