USD/TRY: Bulls flirt with 8.0000 threshold near two-week top, US GDP in focus
|- USD/TRY consolidate gains from 8.0507 after three-day winning streak.
- Turkish Manufacturing Confidence eased, Capacity Utilization improved in November.
- Turkey-Germany tussle, bombings in border near Syria and virus woes offer background music while hope of US stimulus favor the bulls.
- US GDP, risk catalysts become the key for short-term direction.
USD/TRY wobbles around 8.0000 during the early Asian session on Wednesday. In doing so the pair halts a three-day uptrend while keeping pullback moves from the highest since November 11.
Although risk-on mood favors the USD/TRY buyers, notable run-up by Wall Street benchmarks triggers the cautious move off-late.
Even so, the tussle between Germany and Turkey, over the EU military mission in the Mediterranean, joins the news of the bombing in the North Syrian area that shares borders with Ankara to favor the bulls. Additionally, the Daily Sabah marks the doubling of the daily coronavirus (COVID-19) infection figures in Turkey, compared with the previous week, while stating 460,916 total cases and 12,672 death toll by Tuesday.
Furthermore, hopes of US stimulus also gets strong as US President-elect Joe Biden now has the right to receive the President’s Daily Brief, the collection of classified intelligence reports prepared for the national leader. Also propelling the upbeat expectations could be chatters surrounding Janet Yellen’s role as US Treasury Secretary and increasing odds that the vaccine will be out sooner than later.
Amid these plays, S&P 500 Futures flirt with a two-week top after its Wall Street counterpart marked record daily closing on Tuesday.
Although Turkey has no major data/events scheduled for published the preliminary readings of the US third quarter (Q3) GDP will be interesting to watch for the USD/TRY traders. However, risk news shouldn’t be ignored in the meantime.
Read: US GDP Preview: Good reasons for an upside surprise, but not necessarily a dollar surge
Technical analysis
21-day SMA near 8.0330 probes the USD/TRY bulls cheering an upside break of 50-day SMA, currently around 7.9100.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.