- The pair advances more than 1% following CPI figures.
- TRY remains in centre stage amidst EM FX instability.
- CBRT said it will adjust monetary stance this month.
The Turkish Lira is giving away part of last Friday’s gains and is now pushing USD/TRY to test the 6.62 area, below session tops around 6.73.
USD/TRY bid after CPI results
TRY is fading Friday’s advance and remains under pressure after Turkish inflation figures tracked by the CPI came in above expectations for the month of August.
In fact, consumer prices rose at a monthly 2.3% during August and 17.90% on an annualized basis, both prints surpassing initial estimates and higher than July’s 0.55% MoM and 15.85% YoY.
Additional data saw Producer Prices rising 6.60% inter-month and 32.13% over the last twelve months, while the manufacturing PMI dropped to 46.4 in August from 49.0%.
TRY remains on the defensive so far today, paying little-to-none attention to earlier comments by the Turkish central bank (CBRT), which is expected to adjust its monetary stance in the meeting later this month. The central bank also reiterated its commitment to support price stability.
USD/TRY key levels
At the moment the pair is gaining 1.11% at 6.6239 facing the next hurdle at 6.8350 (high Aug.30) seconded by 6.9668 (high Aug.14) and finally 7.2393 (all time high Aug.13). On the downside, a breach of 6.3765 (low Aug.31) would open the door to 6.2938 (10-day SMA) and then 6.0912 (21-day SMA).
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