USD/TRY clinched 2019 highs beyond 5.96 on CBRT

  • TRY depreciates further to the 5.96 region vs. USD.
  • Spot leaps to yearly highs on steady CBRT.
  • CBRT removed pledge for further tightening if needed.

The selling pressure around the Turkish Lira is gathering further traction today and pushes USD/TRY to fresh 2019 highs just beyond the 5.9600 handle.

USD/TRY stronger after CBRT

TRY losses further momentum today after the Turkish central bank (CBRT) removed from the statement its pledge for further tightening of monetary conditions if needed.

In addition, and matching the broad consensus, the CBRT left unchanged the One-Week Repo Rate at 24.00% and the Late Liquidity Window Rate at 24.00%.

The central bank noted that the economic activity keeps running at a slow pace, while it expects the current account to maintain its improving note. The CBRT also noted that risks to price stability remain well and sound stemming from higher import prices, food prices and rising inflation expectations.

Still in Turkey, news agency Bloomberg said the country’s sovereign wealth fund, in an effort to keep the flow of credit alive and boost growth, has injected $3.7 billion to five state-owned banks.

In the meantime, spot is up for the sixth session in a row so far today, also posting gains in 11 out of the last 12 weeks following yearly lows in late January (5.1594 on January 31).

What to look for around TRY

The outlook on the Turkish Lira should be under scrutiny in the upcoming months. While the broader sentiment around the EM FX space is expected to influence on TRY, domestic drivers would likely prevail when determining its price action. Among these factors is the ongoing uncertainty around the possibility of a rerun of the mayoral elections in Istanbul, threats of US sanctions over the purchase of a Russian missile defence system and the progress in the implementation of the recently announced structural reforms, conditio sine qua non for the start of a sustainable economic recovery and a return of the confidence in both the currency and the country. In addition, TRY could see some acceleration of the selling impetus after the CBRT dropped its pledge to tighten further the monetary policy conditions in case of need.

USD/TRY key levels

At the moment the pair is gaining 1.35% at 5.9454 and faces the next up barrier at 5.9628 (2019 high Apr.25) seconded by 6.2277 (monthly high Oct.4 2018) and finally 6.5497 (high Sep.13 2018). On the other hand, a break below 5.8155 (200-hour SMA) would open the door for 5.7094 (low Apr.17) and then 5.5712 (200-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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Stable amid trade calm and German stimulus hopes

EUR/USD is trading around 1.1100, marginally higher. President Trump expressed optimism about reaching a trade deal with China while Germany's Scholz opened the door to stimulus. EZ Core CPI is confirmed at 0.9%.


GBP/USD steady below 1.2150 after Yellowhammer leak, as Corbyn calls for no'confidence

GBP/USD is trading below 1.2150 amid reports of food shortages in case of a hard Brexit, project Yellowhammer. Opposition leader Corbyn calls for a no-confidence motion against the government 


USD/JPY bounces off 106.25, focus on Fed minutes, Jackson Hole

USD/JPY bounces off the key support at 106.25 and heads back towards the 106.50 level, in response to downbeat Japanese trade data, risk-on action in the Asian equities and higher Treasury yields.


Gold: Drops to multi-day lows, back below $1500 handle

Meanwhile, technical indicators have been gaining negative traction on hourly charts and support prospects for an extension of the corrective slide back towards testing last week's swing lows.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more