- The Turkish Lira is up around 1% vs. the shared currency.
- Turkish CPI rose 1.62% MoM and 12.15% YoY in May.
- Coming up next, US Factory Orders, Durable Goods Orders.
The Turkish Lira has started the week on a firm note amidst the generalized USD weakness and is dragging USD/TRY to the area of fresh lows near 4.6000.
USD/TRY lower post-CPI
After two consecutive sessions with gains, the pair is now retracing part of the recent advance and is returning to the 4.6000 region.
TRY remains near daily tops vs. the buck following the release of inflation figures in the Turkish economy. In fact, consumer prices tracked by the CPI rose at a monthly 1.62% in May and 12.15% over the last twelve month.
In addition, Turkish Producer Prices rose 3.79% inter-month and at annualized 20.16%.
In the meantime, the pair clinched fresh 5-day tops in the boundaries of the 4.68 area earlier in the session, although it shed some ground afterwards.
On the broader picture, TRY stays vulnerable on domestic politics, the omnipresent disputes between President Erdogan and CBRT Governor Cetinkaya, rising inflation and the upcoming elections later in the month.
USD/TRY key levels
At the moment the pair is losing 1.05% at 4.6023 and a breach of 4.4879 (21-day sma) would expose 4.4410 (low May 30) and then 4.2197 (low May 10). On the other hand, the next hurdle is located at 4.6789 (high Jun.4) seconded by 4.7214 (high May 28) seconded by 4.8032 (high May 24) and finally 4.9241 (all-time high May 23).
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