USD/TRY bounces off lows, still near 7.000

USD/TRY regains some traction following YTD lows.
Turkey’s Industrial Production expanded 9.0% YoY.
End-of-Year Inflation came in at 11.23% (from 11.15%).

Pablo Piovano FXStreet

The Turkish lira is giving away part of the earlier gains and now lifts USD/TRY to the 7.03 region.

USD/TRY gradually approaches 7.0000

After bottoming out in the vicinity of the key 7.0000 level on Thursday, USD/TRY regained some upside traction and is now hovering around the 7.03 zone, posting marginal gains for the day.

The recent weakness in the greenback accelerated the inflows into the EM FX space, benefiting the lira and its regional peers. The Turkish currency keeps deriving support as well from the tigh monetary policy stance from the central bank (CBRT), particularly since the shift to a more orthodox view in November.

It is worth noting that the lira posted gains in the last four consecutive months after reaching an all-time low vs. the US dollar near 8.60 back in early November. The pair is now navigating in levels close to the 7.0000 mark, last traded in early August 2020.

In the Turkish docket, the Industrial Production expanded 9.0% on a year to December boosted by the outperformance of the manufacturing sector (+9.5%). Additional data releases saw Retail Sales contracting at a monthly 4.2%, the Current Account deficit shrinking to $3.21 billion and the End Year CPI Forecast at 11.235 (from 11.15%).

USD/TRY key levels

At the moment the pair is gaining 0.09% at 7.0246 and faces the next hurdle at 7.1383 (weekly high Feb.9) followed by 7.3653 (200-day SMA) and finally 7.5415 (2021 high Jan.18). On the downside, a drop below 7.0071 (2021 low Feb.11) would expose 6.8796 (monthly low Aug.4 2020) and then 6.6834 (monthly low Jun.3 2020).

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.