- The Turkish Lira loses ground for another session.
- Recent USD-strength keep EM FX space under pressure.
- Turkey’s CPI rose at an annualized 20.30% in December.
Poor start of the year for the Turkish Lira, which is depreciating for the second session in a row today and is lifting USD/TRY to the vicinity of 5.50 at the time of writing.
USD/TRY hurt by USD-buying, CPI
After testing fresh tops in the boundaries of the 5.74 mark earlier in the session, TRY has managed to regain some ground lost and drag spot to the current 5.48 region, where it is now looking to stabilize.
The recent strong rebound in the greenback put once again the EM FX space under pressure amidst the persistent unease surrounding the US-China trade war and the potential slowdown in the Chinese economy.
In the domestic calendar, consumer prices in Turkey rose at an annualized 20.3% during the last month of 2018 while contracted 0.4% inter-month.
What to look for around TRY
The Turkish Lira is expected to remain under pressure, as the downtrend in inflation could prompt the CBRT to cut rates, deteriorating the outlook for the currency. It is worth recalling that a tighter monetary stance is a source of stability for the Lira in a context where investors’ perception of EM markets still remains fragile. On another front, geopolitical risks including Russia and Syria, albeit dormant for the time being, represent another source of potential increased volatility.
USD/TRY key levels
At the moment the pair is up 1.53% at 5.4740 and a breakout of 5.7386 (2019 high Jan.3) would open the door to 5.8736 (high Oct.23) and finally 6.2293 (high Oct.4). On the flip side, the next support aligns at 5.3204 (21-day SMA) seconded by 5.2113 (low Dec.19) and then 5.1346 (low Nov.29).
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 flirts with 1.0700 post-US PMIs
EUR/USD maintains its daily gains and climbs to fresh highs near the 1.0700 mark against the backdrop of the resumption of the selling pressure in the Greenback, in the wake of weaker-than-expected flash US PMIs for the month of April.
GBP/USD surpasses 1.2400 on further Dollar selling
Persistent bearish tone in the US Dollar lends support to the broad risk complex and bolsters the recovery in GBP/USD, which manages well to rise to fresh highs north of 1.2400 the figure post-US PMIs.
Gold trims losses on disappointing US PMIs
Gold (XAU/USD) reclaims part of the ground lost and pares initial losses on the back of further weakness in the Greenback following disheartening US PMIs prints.
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.