- The Lira depreciated to fresh yearly lows vs. the buck.
- Spot climbed to the boundaries of 5.86 in early trade.
- TRY remains under pressure despite today’s USD weakness.
After recording fresh 2019 highs near the 5.8600 handle during early trade, USD/TRY came under some selling pressure and has now receded to the 5.8300 neighbourhood.
USD/TRY focused on risk-trends, politics
TRY has reclaimed part of the ground lost in early trade on the back of a pick up in the mood surrounding the risk-associated complex and an offered bias around the greenback.
The pair confirmed its underlying bullish view earlier today, advancing to fresh yearly highs in the boundaries of 5.8600 the figure just to recede a tad soon afterwards.
The Lira regained some composure today tracking the sharp up move in crude oil prices, with the European reference Brent crude trading in levels last seen in late October 2018 beyond the $74.00 mark per barrel.
In the meantime, the Lira is expected to stays under the microscope in light of the still unresolved issue involving Turkey, a Russian defense system and US F-35 jets. Furthermore, jitters on the domestic political arena stay well and sound around the potential rerun of the mayoral elections in Istanbul.
What to look for around TRY
The outlook on the Turkish Lira should be under scrutiny in the upcoming months. While the broader sentiment around the EM FX space is expected to influence on TRY, domestic drivers would likely prevail when determining its price action. Among these factors is the ongoing uncertainty around the possibility of a rerun of the mayoral elections in Istanbul, threats of US sanctions over the potential purchase of a Russian defence system and the progress in the implementation of the recently announced structural reforms, conditio sine qua non for the start of a sustainable economic recovery and a return of the confidence in both the currency and the country.
USD/TRY key levels
At the moment the pair is gaining 0.41% at 5.8302 and faces the next up barrier at 5.8608 (2019 high Apr.22) seconded by 5.8707 (high Oct.23 2018) and finally 6.2277 (monthly high Oct.4 2018). On the other hand, a break below 5.7698 (200-hour SMA) would open the door for 5.7094 (low Apr.17) and then 5.6393 (21-day SMA).
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.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.