USD/TRY recedes from new all-time tops as CBRT takes action

USD/TRY clinches new all-time high near 13.85 on Wednesday.
The CBRT intervened and pushed the pair back to 12.30.
Turkey’s Manufacturing PMI improves a tad to 52.0 in November.

Pablo Piovano FXStreet

Another volatile session for the Turkish currency on Wednesday. Indeed, after hitting fresh record high near 13.85, USD/TRY came under pressure and receded violently to the 12.30 region supported by CBRT intervention.

USD/TRY now looks to the CPI release

USD/TRY now reverses the initial spike to the vicinity of 14.0000, as the Turkish central bank (CBRT) announced it intervened in the FX markets and sold US dollars. The CBRT kind of justified the intervention following unhealthy price formation in the exchange rate.

In addition, President Erdogan once again stressed he will never support high interest rates and suggested there is no logical explanation behind high prices.

Earlier in Turkey, the Manufacturing PMI improved a little to 52.0 in November (from 51.2), while investors already shifted their attention to the release of the key inflation figures for the month of November due on Thursday.

USD/TRY key levels

So far, the pair is losing 2.05% at 13.0955 and a drop below 12.3597 (low Dec.1) would open the door to 11.5451 (low November 24) and finally 11.0637 (20-day SMA). On the other hand, the next up barrier lines up at 13.8473 (all-time high Dec.1) followed by 14.0000 (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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