USD/TRY pushes higher and approaches 10.0000

  • USD/TRY extends the rally to the vicinity of 10.0000.
  • The loses around 25% vs. the greenback so far in 2021.
  • The CBRT meets on November 18 and could reduce rates further.

The Turkish lira depreciates to fresh all-time lows vs. the greenback and pushes USD/TRY to the boundaries of the psychological 10.0000 mark on Thursday.

USD/TRY: The 10.00 yardstick is around the corner

USD/TRY advances for the third consecutive session so far on Thursday against the backdrop of the relentless move higher in the US dollar.

In fact, spot picked up further pace as of late following the higher-than-expected US inflation figures during October (published on Wednesday). The 30-year spike in the US CPI rapidly ignited speculations over a sooner rates lift-off by the Fed, exactly the opposite situation to what is happening in Turkey.

Indeed, the Turkish CPI rose to nearly 20% in October vs. the same month of 2020… and the Turkish central bank (CBRT) surprised markets with a shocking 200 bps reduction of the One-Week Repo Rate.

That said, while the next CBRT meeting on November 18 remains a close call (ish), another interest rate cut by the central bank should not surprise anybody and could open the door to USD/TRY to challenge… the moon?.

USD/TRY key levels

So far, the pair is gaining 0.71% at 9.9125 and a drop below 9.5581 (20-day SMA) would expose 9.4722 (monthly low Nov.2) and finally 9.4128 (weekly low Oct.26). On the other hand, the next up barrier lines up at 9.9723 (all-time high Oct.25) followed by 10.0000 (psychological level).


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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays pressured towards 1.1200 on firmer dollar, yields

EUR/USD closes in on 1.1200, as global stocks take a plunge. The Fed's hawkishness is reverberating throughout markets, boosting the safe-haven US dollar. The US two-year Treasury yields jump to 23-month highs. US Q4 GDP awaited. 


GBP/USD hits monthly lows below 1.3450 amid Fed-led risk-aversion

GBP/USD is inching lower towards 1.3400, sitting at monthly lows amid the hawkish Fed outlook-led risk-aversion. The US dollar remains strongly bid in tandem with the Treasury yields. Brexit and UK political concerns add to the cable's downside. 


Gold bears await US Q4 GDP for the next leg lower Premium

Gold price is licking its wounds near weekly lows of $1,813, as bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more