USD/TRY drops to 3-day lows near 9.2000

USD/TRY loses further momentum and tests 9.2000.
The offered stance in the dollar weighs on the pair.
The CBRT meets on Thursday and is likely to reduce rates.

Pablo Piovano FXStreet

The Turkish lira adds to Tuesday’s gains and drags USD/TRY to new 3-day lows in the boundaries of the 9.2000 yardstick on Wednesday.

USD/TRY focuses on CBRT decision

USD/TRY loses ground for the second session in a row midweek against the persistent corrective downside in the greenback. Indeed, the dollar faded the initial optimism and now the US Dollar Index (DXY) slipped back into the negative territory for yet another session.

The softer note in the buck, in the meantime, allows the risk complex – and the beleaguered lira - to extend gains for an extra session on Wednesday ahead of the CBRT event on Thursday.

It is worth noting that consensus among traders remains largely tilted towards another 100 bps interest rate cut, taking the One-Week Repo Rate to 17.00%.

Other than the CBRT meeting, the Turkish calendar will see the release of the Consumer Confidence for the current month.

USD/TRY key levels

So far, the pair is losing 0.46% at 9.2518 and a drop below 9.1234 (10-day SMA) would aim for 8.9881 (20-day SMA) and finally 8.8317 (monthly low Oct.4). On the other hand, the next up barrier lines up at 9.3699 (all-time high Oct.19) followed by 10.0000 (round level).

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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