USD/TRY challenges all-time highs near 8.80 post-CBRT

USD/TRY leaps to the vicinity of 8.8000.
The CBRT surprised everybody by cutting rates to 18%.

Pablo Piovano FXStreet

The Turkish lira depreciated to nearly all-time lows vs. the greenback and pushes USD/TRY to the 8.8000 zone on Thursday.

USD/TRY up on dovish CBRT

USD/TRY quickly climbed to new highs after the Turkish central bank (CBRT) increased the One-week Repo Rate by 100bps to 18% against (almost) all odds at Thursday’s meeting.

The decision by the CBRT caught markets off-guard despite the central bank announced in past weeks that it might start setting the policy rate based on the core inflation, which is lower than the headline reading.

USD/TRY key levels

So far, the pair is gaining 1.43% at 8.7680 and a drop below 8.6056 (weekly low Sep.21) would aim for 8.4920 (55-day SMA) and finally 8.2590 (monthly low Sep.6). On the other hand, the next up barrier lines up at 8.7965 (monthly high Sep.23) followed by 8.7974 (2021 high Jun.25).

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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