USD/TRY resumes the upside, still well above 13.0000
|- USD/TRY fades Wednesday’s downtick and refocuses on the upside.
- The CBRT signalled it has no plans to reduce rates in H1 2022.
- Key Turkey’s inflation figures are due on Friday.
The lira resumes the downside and prompts USD/TRY to continue the rally to the 13.5000 region on Thursday.
USD/TRY looks to CBRT, data
Following Wednesday’s pullback, USD/TRY now regains upside traction and approaches the mid-13.00s on the back of further effervescence in the domestic political arena.
Indeed, earlier on Thursday, President Erdogan appointed N.Nebati as the new Minister of Treasury and Finance after the resignation of former minister L.Elvan, who was an advocate of the orthodox approach to the monetary policy.
In addition, S.Kavcioglu, Governor of the Turkish central bank (CBRT), suggested that investors will see the impact of the current monetary policy stance in H1 2022 and added that there are no plans to cut the One-Week Repo Rate further during that period. Kavcioglu, in addition, noted that companies’ investment appetite and employment expectations remain at high levels, while the improvement in the current account balance became clearer.
In the docket, Turkish Exports rose to $21.50B in November (from $20.8B). All the attention, in the meantime, remains on the release of the inflation figures for the month of November, due on Friday.
USD/TRY key levels
So far, the pair is gaining 2.07% at 13.3935 and a drop below 12.3585 (low Dec.1) would open the door to 11.5451 (low November 24) and finally 11.2500 (20-day SMA). On the other hand, the next up barrier lines up at 13.8473 (all-time high Dec.1) followed by 14.0000 (round level).
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.