USD/TRY testing multi-day lows near 5.6500

USD/TRY extends the downside to the 5.6500 region.
The CBRT cut the One-Week Repo Rate to 19.75% on Thursday.
President R.T.Erdogan said further cuts remain on the table.

Pablo Piovano FXStreet

The Turkish Lira continues to appreciate vs. the greenback in the second half of the week and is now dragging USD/TRY to fresh 4-day lows in the 5.65 region.

USD/TRY offered post-CBRT

TRY stays firm despite the Turkish Central Bank (CBRT) reduced the key One-Week Repo Rate by 425 bps at its meeting yesterday, taking it to 19.75% from 24.0%. The central bank noted that economic activity kept improving in tandem with the better outlook from exports and tourism revenues.

The Lira maintained the firm fashion today after President Erdogan advocated for further rate cuts in the near term future, always sustained by his conviction that lower rates will bring lower inflation (?).

In the meantime, the demand for TRY and other EM FX looks underpinned by prospects of rate cuts by the Fed next week and despite the rally in the greenback stays unabated for the time being.

In the calendar, and other than the CBRT event, Turkey Capacity Utilization ticked lower to 76.2% during July and Manufacturing Confidence dropped to 98.3 during the same period (from 10.2). Earlier in the week, Consumer Confidence eased to 56.5 for the current month.

Later today, advanced US Q2 GDP figures will keep the attention on the buck ahead of next week’s critical FOMC meeting.

USD/TRY key levels

At the moment the pair is losing 0.45% at 5.6539 and faces the next support at 5.5971 (low Jul.19) followed by 5.5741 (monthly low Jul.4) and then 5.5619 (200-day SMA). On the flip side, a surpass of 5.7727 (high Jul.25) would expose 5.7849 (monthly high Jul.8) and finally 5.8138 (55-day SMA).

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.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.