USD/TRY bounces off 3-day lows near 7.75

USD/TRY loses further momentum and tests the 7.76 area.
Turkey’s Economic Sentiment Index eased to 89.50 in November.
The lira stays supported by recent orthodox measures by the CBRT.

Pablo Piovano FXStreet

The Turkish lira extends the upside momentum in the second half of the week and drags USD/TRY to new 3-day lows in the 7.7600 level.

USD/TRY met resistance above the 8.0000 mark

USD/TRY is down for the third straight session on Friday and extends the correction lower from weekly tops near 8.05 seen on Tuesday.

Investors keep favouring the lira’s momentum following the recent turn to a more orthodox monetary stance from the Turkish central bank (CBRT) and the market friendly message from the Erdogan’s administration.

In this direction, the CBRT will now apply the same reserve requirement ratios and remuneration rates to all domestic lenders, looking to boost credit to both consumers and businesses.

In the domestic docket, Turkey’s Economic Sentiment eased to 89.50 for the month of November, adding to the drop observed in the Manufacturing Confidence gauge earlier in the week.

USD/TRY key levels

At the moment the pair is losing 0.37% at 7.8371 and a drop below 7.5568 (100-day SMA) would expose 7.5119 (monthly low Nov.20) and then 7.3970 (horizontal support line off August’s top). On the other direction, the next hurdle emerges at 8.0423 (weekly high Nov.24) followed by 8.5777 (all-time high Nov.6) and finally 9.0000 (psychological hurdle).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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