USD/TRY eases from all-time tops around 4.50
|- TRY losses ground to the 4.50 level vs. the buck, all-time lows.
- The Lira recovered some ground on Erdogan-Cetinkaya meeting.
- Domestic politics, USD-strength continues to drive TRY sentiment.
The Turkish Lira has now recovered some ground after lifting USD/TRY to fresh all-time highs in the 4.50 area earlier in the session.
USD/TRY now looks to CBRT-Government meeting
The Turkish currency extended its downside momentum today and pushed the pair to record a new all-time peak around 4.50.
However, subsequent news citing the central bank was closely monitoring ‘unhealthy price formations in markets’, the likeliness that the CBRT could take necessary steps and a meeting between President Erdogan and CBRT Governor Cetinkaya have poured cold water over the selling sentiment around TRY and drove spot off tops.
In addition, the probability of an emergency rate hike by the CBRT and recent news from S&P noting the probability of a ‘hard landing’ in Turkey, imminent elections and the usual conflicts between the Government and the CBRT should continue to weigh on the Lira.
USD/TRY key levels
At the moment the pair is losing 0.42% at 4.4291 and a breakdown of 4.3119 (10-day sma) would expose 4.2197 (low May 10) and then 4.1888 (21-day sma). On the upside, the next hurdle aligns at 4.5009 (all-time high May 16).
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