USD/TRY downside limited by the 55-day SMA near 5.67
- Decline in USD/TRY remains limited by the 5.6700 region.
- CBRT’s M.Uysal made upbeat comments on economy.
- Turkey Economic Sentiment due on Friday.
The upbeat tone in the Turkish Lira remains well and sound on Wednesday and is now motivating USD/TRY to stay close to the area of recent lows in the 5.67 neighbourhood.
USD/TRY focused on trade
TRY keeps the firm note unchanged so far this week, although it still remains unable to push spot further south of the 5.67 area, where also converges the 55-day SMA. The focus of attention stays on the US-China trade developments ahead of the key meeting early next month. However, rising scepticism around a positive outcome could put the upside momentum in the Lira under scrutiny.
Earlier today, CBRT’s M.Uysal said the economy continues to recover at a moderate pace and also emphasized the strong momentum around exports.
In the meantime, the apparent meeting between President Erdogan and President Trump at the UN General Assembly appears to be cancelled. Both presidents were expected to discuss the safe zone in Northern Syria.
Later in the week, the Turkish Economic Confidence for the month of September is due on Friday. On Monday, both Capacity Utilization and Manufacturing Confidence for the current month ticked lower from their previous readings.
USD/TRY key levels
At the moment the pair is losing 0.05% at 5.6895 and faces the next support at 5.6732 (low Sep.24) seconded by 5.6483 (monthly low Sep.12) and then 5.6198 (200-day SMA). On the upside, a surpass of 5.7291 (21-day SMA) would aim for 5.7581 (100-day SMA) and finally 5.7913 (high Sep.11).
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.
