USD/TRY challenges 9.5000 following the CBRT decision

USD/TRY moves sharply higher and approaches 9.5000.
The CBRT reduced the One-Week Repo Rate by 200 bps.
Turkey’s Consumer Confidence eased to 76.8 in October.

Pablo Piovano FXStreet

The Turkish lira resumes the downside and pushes USD/TRY to new all-time highs around 9.50 on Thursday.

USD/TRY higher post-CBRT

The capacity of the Turkish central bank (CBRT) to surprise everybody remained intact on Thursday.

Indeed, USD/TRY pops to fresh all-time highs after the CBRT caught markets off guard and reduced the One-Week Repo Rate by an unexpected 200 bps to 16.00%, even below the latest level of the Core CPI recorded in September (16.98%).

In the statement, the central bank reiterated that the current elevated inflation is mainly due to transitory factors. These temporary factors behind high consumer prices, according to the bank, leave limited room to reduce the policy rate further in the next months… (wait, what?)'

In the meantime, futures of USD/TRY trade around 9.5800.

USD/TRY key levels

So far, the pair is up 2.16% at 9.4147 and a drop below 9.2467 (10-day SMA) would aim for 9.0107 (20-day SMA) and finally 8.8317 (monthly low Oct.4). On the other hand, the next up barrier lines up at 9.4707 (all-time high Oct.21) followed by… the moon.

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.

AUD/USD holds above 0.6950 as bullish USD caps gains

AUD/USD edges lower during the Asian session on Tuesday, stalling a two-day recovery move from a two-month low, touched last week. An extended rout in the fixed income market keeps US bond yields elevated near multi-year highs. This, along with geopolitical uncertainties, helps the US Dollar retain its bullish tone despite receding October Fed hike bets. However, expectations for another RBA rate hike this month could act as a tailwind for the Aussie.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold stays firm; looks at $4,200

Gold builds on Monday’s marginal bounce, although it struggles to reclaim the key $4,200 mark per troy ounce so far on Tuesday. The yellow metal’s advance comes on the back of the fresh downside momentum in the US Dollar in tandem with retreating US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls battle to restart uptrend amid ETF outflows

Bitcoin upholds a robust bullish outlook, trading at $85,837 on Tuesday as sellers push to regain control over the trend. Altcoins, meanwhile, reflect Bitcoin’s ranging action, with Ethereum trading sideways above $2,700 and Ripple hovering around the pivotal $1.50 level.

Japanese Yen nears 158.00: Two analysts agree it's bullish, and disagree on how far the breakout goes

The JPY is drifting near 158.00 against the USD ahead of a busy week of Japanese data and a still-unclear BoJ timetable. The two most recent FXStreet analyses agree on the direction, but they disagree on the target and the mechanism.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.