USD/TRY rebounds from lows, back near 5.60
|- USD/TRY met support near the 10-day SMA around 5.54.
- Turkey jobless rate eased to 12.8% in May.
- US Retail Sales came in above expectations in July.
The Lira is trading on a firm note today, dragging USD/TRY to the 5.54 area, where sits the key 10-day SMA and some support turned up so far.
USD/TRY met support near the 10-day SMA
The pair has reversed yesterday’s gains, as the Lira managed to regains some traction on the back of the better mood in the EM space.
In fact, recent announcement from the White House delaying US tariffs on some Chinese products lifted the morale among investors, helping the riskier assets to regain part of the ground lost in past sessions
In addition, TRY remains also vigilant on potential frictions vs. the US regarding the safe zone in northern Syria.
In the docket, Turkey’s unemployment average ticked lower to 12.8% in the 3-months ended in May, while Industrial Production figures and the Budget Balance results are expected tomorrow.
What to look for around TRY
The Lira met strong resistance in the 5.45 area so far, or multi-month highs vs. the Greenback. However, the current preference for safer assets in response to the US-China trade war has undermined extra gains in TRY for the time being. On another front, newly appointed Governor M.Uysal appears to have inaugurated an Erdogan-sponsored easing cycle following the recent interest rate cut by the CBRT. Whether this move was untimely (as regarded before the rate cut) it remains to be seen. In the meantime, TRY remains supported by the ongoing ‘hunt for yield’, as domestic rates still look attractive in spite of the recent cut. On the more macro view, the country needs to implement the much-needed structural reforms (announced in April) to bring in more stability to the currency and sustain a serious recovery in both economic activity and credibility.
USD/TRY key levels
At the moment the pair is receding 0.48% at 5.5849 and faces the next downside barrier at 5.5395 (10-day SMA) seconded by 5.4494 (monthly low Aug.8) and then 5.3918 (78.6% Fibo of the February-May up move). On the other hand, a surpass of 5.6347 (monthly high Aug.13) would expose 5.7025 (50% Fibo of the February-May up move) and finally 5.7727 (high Jul.25).
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.