USD/TRY drops to 28.5000 post-CBRT rate hike

USD/TRY retreats to the 28.5000 region on Thursday.
The CBRT hiked rates more than initially expected.
Further tightening still appears on the horizon.

Pablo Piovano FXStreet

The Turkish currency gathers renewed steam and drags USD/TRY to fresh weekly lows near the 28.5000 zone on Thursday.

USD/TRY retreats to multi-day lows on CBRT

USD/TRY reversed four consecutive daily advances and briefly revisited the 28.5000 region after the Turkish central bank (CBRT) caught market participants off guard by raising its One-Week Repo Rate by 500 bps to 40.00% at its event on Thursday.

The move by the CBRT came as a surprise after market consensus was expecting a 250 bps rate hike. According to the statement, the Committee has determined that the current monetary tightening level is close to the necessary level for disinflation, and the pace of tightening will slow down, completing the tightening cycle quickly while maintaining price stability.

So far this year, the Turkish lira has depreciated nearly 55% vs. the greenback, having advanced in only six months since January 2021.

USD/TRY significant levels

So far, USD/TRY is losing 0.16% to 28.7611 and faces the next support at 27.8265 (55-day SMA) seconded by 25.2143 (monthly low August 25) and finally 23.9286 (200-day SMA). On the flip side, immediate resistance comes at 28.8736 (2023 high November 23) followed by 29.0000 (round level) and 30.0000 (round level).

(This story was corrected on November 23 at 12:09 GMT to say that the pair was USD/TRY instead of USD/JPY)

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.