USD/TRY climbs to 3-day highs around 8.6000

  • USD/TRY reverses part of recent losses, back around 8.60.
  • Turkey’s Consumer Confidence eased to 79.5 in July.
  • Markets in Turkey will be closed this week due to holiday.

The Turkish lira gives away part of the recent gains and lifts USD/TRY back to the 8.6000 region at the beginning of the week.

USD/TRY up on dollar gains, risk aversion

The perseverant risk aversion lends extra support to the dollar in detriment of the riskier assets/high yielders on Monday. The move in the buck encourages the pair to reverse six consecutive daily pullbacks and bounce off lows in the key 8.50 zone (July 16).

The recent (unusual?) strength in the lira appears propped up by the so far tight stance from the Turkish central bank (CBRT), which left the One-Week Repo Rate unchanged at 19.00% for the fourth consecutive month last week. The CBRT’s statement reiterated the bank’s commitment to fight the current high inflation and that the policy rate will be set above the inflation rate.

It is worth recalling that inflation in Turkey unexpectedly edged higher in June vs. speculations that consumer prices could have already peaked earlier in the year. Investors continue to pencil in the resumption of the easing cycle by the CBRT at some point towards the end of the current year.

In the domestic calendar, Turkey’s Consumer Confidence receded to 79.5 for the current month (from 81.7).

On another front, the Turkish stock market will be closed the rest of the week due to the Eid-al-Adha holiday.

USD/TRY key levels

So far, the pair is gaining 0.75% at 8.5706 and faces the next hurdle at 8.6733 (monthly high Jul.8) followed by 8.7974 (all-time high Jun.25) ahead of 9.0000 (round level). On the downside, a drop below 8.4928 (monthly low Jul.16) would aim for 8.2803 (monthly low Jun.11) and finally 8.2613 (100-day SMA).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.


GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.


XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more