USD/TRY in all-time highs near 8.00 on geopolitical jitters

USD/TRY keeps pushing higher and approaches 8.00.
Increasing geopolitical risks keep weighing on the Turkish currency.
The lira is the second worst performer in the EM FX space.

Pablo Piovano FXStreet

The Turkish lira keeps the downward path well and sound for yet another session and lifts USD/TRY to a fresh all-time high just below the key barrier at 8.00 the figure.

USD/TRY higher on geopolitics

TRY started the second half of the week on a negative fashion and depreciated further to the vicinity of the 8.00 level per dollar, recording a new all-time low at the same time.

The Turkish currency remains under heavy pressure pari passu with rising geopolitical concerns both in the Caucasus (where Turkey supports Azerbaijan in its conflict with Armenia) and in the Eastern Mediterranean (where tensions with Greece keep rising). Both conflicts appear far from being mitigated, let alone solved for the time being.

Adding insult in injury, Turkey plans to test the Russian S-400 defence missile system, which has already ringed alarm bells regarding US sanctions against the country.

So far, TRY shed already more than 25% this year, the second-worst performing EM currency after the Brazilian real (BSR).

USD/TRY key levels

At the moment the pair is gaining 0.70% at 7.9371 and faces the next hurdle at 7.9401(all-time high Oct.8). On the downside, a drop below 7.8558 (monthly high Sep.29) would expose 7.5082 (low Sep.25) and finally 7.3996 (55-day SMA).

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 tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.