USD/TRY stronger, targets 4.95 post-CBRT

The Turkish currency collapses nearly 4% vs. the greenback.
The pair tested the boundaries of 4.94, fresh 2-week highs.
The CBRT left the policy rate unchanged at today’s meeting.

Pablo Piovano FXStreet

The Turkish Lira is sharply lower vs. its American peer on Tuesday, lifting USD/TRY to fresh multi-day tops in the vicinity of 4.94.

USD/TRY higher on steady CBRT

TRY quickly depreciated after the Turkish central bank (CBRT), left unchanged the one week repo rate at 17.75% at today’s meeting.

The CBRT noted that domestic demand continued to decelerate, while it still sees inflation at high levels as well as inflation expectations. That said, the central bank deemed appropriate to leave rates at 17.75% and continue with the tightening cycle for a longer period.

In addition, the CBRT said it will continue its data-dependent stance in order to maintain the price stability.

USD/TRY key levels

At the moment the pair is gaining 3.37% at 4.8981 facing the next hurdle at 4.9390 (high Jul.24) seconded by 4.9721 (2018 high Jul.12) and then 5.0000 (psychological level). On the downside, a breach of 4.7257 (21-day sma) would open the door to 4.6283 (55-day sma) and finally 4.5060 (low Jul.9).

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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