USD/TRY bounces off lows near 4.03 post-CBRT

The Turkish Lira appreciated to fresh 3-day tops post-CBRT.
The pair’s weekly upside found resistance above 4.11 so far.
The CBRT raised the LLW to 13.50% from 12.75%.

Pablo Piovano FXStreet

The Turkish Lira has faded the initial post-CBRT spike and is now helping USD/TRY to retake the positive territory beyond 4.10 the figure.

USD/TRY rebounds from lows

The pair initially dropped to fresh lows in the mid-4.03s after the Turkish central bank (CBRT) left the key rates unchanged while rising the Late Liquidity Window (LLW).

In fact, the CBRT left intact the Overnight Lending Rate at 9.25%, the Overnight Borrowing Rate at 7.25% and the One-Week Repo Rate at 8.0%, broadly in line with market expectations. However, the central bank raised the LLW lending rate (between 4pm-5pm) by 75 bp to 13.25%.

In the meantime, TRY remains sidelined in recent sessions although vulnerable to geopolitical risks and domestic politics, particularly after the recent announcements of snap presidential and parliamentary elections in Turkey on June 24 that could see President Erdogan extend its power.

USD/TRY key levels

At the moment the pair is up 0.34% at 4.0993 and a breakout of 4.1144 (high Apr.24) would aim for 4.1950 (All-time high Apr.11) and finally 4.2000 (psychological handle). On the flip side, the next support is located at 4.0349 (low Apr.25) followed by 4.0037 (low Apr.18) and then 3.9325 (low Mar.29).

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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