USD/TRY firmer, tests weekly peaks beyond 8.0000
|- USD/TRY extends the rally above the 8.00 mark.
- The lira remains on the defensive as selling bias picks up pace.
- Turkey’s Manufacturing Confidence eased to 103.9 this month.
The Turkish lira extends the downside for another session on Tuesday and lifts USD/TRY back to the area above the psychological 8.00 mark, just to receded afterwards.
USD/TRY remains supported around 7.50
USD/TRY advances for the third session in a row on turnaround Tuesday, as the Turkish currency continues to give away gains following the recent rally. On the latter, it is worth recalling that the lira gained around 12% from all-time lows vs. the dollar on November 6 to last week’s highs around 7.50.
However, market participants (Turkish citizens?) appear to be using those lira’s gains to resume their purchases of US dollars, putting the pair under extra upside pressure. In the meantime, investors are expected to keep closely following the developments in the country following the latest orthodox hike by the central bank (CBRT) and President Erdogan’s pledge to take Turkey to an era of financial stability, growth and foreign investment.
In the domestic docket, Turkey’s Manufacturing Confidence dropped to 103.9 in November (from 108.1) and the Capacity Utilization ticked higher to 75.8% (from 75.4). Later in the week, the Economic Sentiment gauge is due as well as the CBRT Minutes.
USD/TRY key levels
At the moment the pair is up 1.02% at 7.9537 and faces the next hurdle at 8.0423 (weekly high Nov.24) followed by 8.5777 (all-time high Nov.6) and finally 9.0000 (psychological hurdle). On the downside, a drop below 7.5119 (monthly low Nov.20) would expose 7.3970 (horizontal support line off August’s top) and then 7.1063 (200-day SMA).
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.