USD/TRY trades in a suspiciously narrow daily range – Rabobank

FXStreet Team FXStreet

USD/TRY is kept in a suspiciously narrow daily range around 6.85 though today the pair had a trip to 6.90. Economists at Rabobank expect dollar/lira to be capped by the habitual suspects.

Key quotes

“Turkey’s inflation accelerated further to 12.6% y/y in June after rising sharply to 11.4% y/y in May from 10.94% in April. The breakdown revealed a broad-based increase in core goods prices. This can be attributed to rising cost-push inflationary pressure driven by the costs of dealing with the Covid19 and a weaker lira.”

“The central bank remains confident that inflation will start decelerating again in the second half of the year due to ‘demand-driven disinflationary effects.’ We are not entirely convinced given that banks are providing substantial amount of credit to the economy which may inevitably fuel demand-led pressure.”

“USD/TRY seems to be artificially kept in a very narrow daily range by the usual local suspects, who try to prevent it from regaining a strong upside momentum on the back of growing concerns about high inflation, negative interest rates and a sharp widening of the current account deficit to USD -12.8 billion in January-April, up from just USD -0.9 billion last year.”

Author

FXStreet Team

FXStreet

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.