USD/TRY rebound approaches 18.00 amid risk-aversion, focus on Turkish inflation, US NFP


Share:
  • USD/TRY picks up bids to snap two-day downtrend around the yearly top.
  • US dollar bears take a breather as chatters surrounding Sino-American tussles, recession weigh on sentiment.
  • Turkish CPI, US NFP will be crucial data to watch for clear directions.

USD/TRY prints the first daily gains in three as buyers attack 18.00 threshold heading into Tuesday’s European session. In doing so, the Turkish lira (TRY) pair justifies the market’s rush toward the US dollar amid a risk-off mood.

That said, the chatters surrounding the US-China tussle over US House Secretary Nancy Pelosi’s visit to Taiwan and the likely hardships for Chinese chipmakers appear to weigh on the market sentiment. On the same line could be the dragon nation’s readiness for a military drill in Bohai, South China Sea. Furthermore, headlines suggesting Chinese policymakers’ lack of confidence in this year's Gross Domestic Product (GDP) forecasts also contribute to the risk-off mood and drown the quote.

Elsewhere, fears of economic slowdown take clues from the latest PMIs from the US and Europe, which in turn roils the market’s mood and amplifies the risk-aversion wave. Also challenging the sentiment could be Fed Chair Jerome Powell’s indirect signals that the hawks are running out of steam.

In addition to the risk-off mood, the market’s fears of higher inflation in Turkiye and the government’s push for a no rate hike also propel the USD/TRY prices.

As a result, Wednesday’s Turkish Consumer Price Index (CPI) for July, expected 80.5% YoY versus 78.62 prior, appears an important data for the USD/TRY traders to watch. Following that, the US employment data for July, up for publishing on Friday, will be crucial to watch for clear directions. Meanwhile, the Fedspeak and the US ISM Services PMI for July could entertain traders.

Technical analysis

While the 10-DMA restricts short-term USD/TRY downside around 17.82, an upward sloping resistance line from July 08, at 18.11 by the press time, challenges the pair buyers before directing them to the year 2021 peak surrounding $18.36.

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD retreats below 1.0700 after upbeat US employment data

EUR/USD retreats below 1.0700 after upbeat US employment data

EUR/USD has lost its recovery momentum and retreated slightly below 1.0700 in the early American session on Thursday. After the monthly data published by the ADP showed that private sector payrolls rose 278,000 in May, the US Dollar found support and forced the pair to edge lower.

EUR/USD News

GBP/USD pulls away from daily highs, stays above 1.2450

GBP/USD pulls away from daily highs, stays above 1.2450

GBP/USD has edged lower from the daily high it set above 1.2480 but managed to stay above 1.2450. Although the US Dollar stays resilient against its rivals after the better-than-expected private sector employment data, the risk-positive market atmosphere helps the pair hold its ground.

GBP/USD News

Gold stays in daily range above $1,960 as US yields puch lower

Gold stays in daily range above $1,960 as US yields puch lower

Gold price declined below $1,960 in the early American session but didn't have a hard time rising back above that level. Despite the upbeat ADP employment data from the US, the 10-year US Treasury bond yield stays in the red well below 3.7%, providing a lift to XAU/USD.

Gold News

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally. 

Read more

C3.ai gets punched in the face, is the AI hype a bit overdone?

C3.ai gets punched in the face, is the AI hype a bit overdone?

OMG! Stocks sold off on Wednesday….and NVDA?  That stock gave back $15 or 3.8% - What is going on? That is not supposed to happen….it can only go up! Quick someone call the NVDA police! 

Read more

Forex MAJORS

Cryptocurrencies

Signatures