USD/TRY targets 7.70 as lira remains bid

USD/TRY extends the downside and approaches 7.70.
Turkey’s GDP surprised to the upside in the third quarter.
Turkeys trade deficit shrunk to around $2.40 billion in October.

Pablo Piovano FXStreet

The buying bias around the Turkish currency stays well and sound for another session on Monday and drags USD/TRY to multi-day lows near 7.70.

USD/TRY weaker on USD-selling, data

The lira gains extra ground at the beginning of the week after Turkey’s GDP figures showed the economy expanded at an annualized 6.7% during the July-September period (from a 9.9% contraction), well above initial estimates.

Extra data noted the Turkish trade deficit shrunk to 42.37 billion during October (from a nearly $5 billion deficit).

In the meantime, the pair recedes for the fourth session in a row in response to the broad-based weakness hitting the greenback, while investors’ sentiment still supports the lira following the recent orthodox turn from both the Turkish central bank (CBRT) and the Erdogan’s administration.

USD/TRY key levels

At the moment the pair is losing 0.14% at 7.7886 and a drop below 7.5657 (100-day SMA) would expose 7.5119 (monthly low Nov.20) and then 7.3970 (horizontal support line off August’s top). On the other direction, the next hurdle emerges at 8.0423 (weekly high Nov.24) followed by 8.5777 (all-time high Nov.6) and finally 9.0000 (psychological hurdle).

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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