- The Turkish Lira gains buying interest following recent elections.
- President Erdogan wins in first round with more than 50% of votes.
- The pair drops to multi-day lows in the 4.54 region.
The Turkish Lira is gaining extra ground at the beginning of the week, dragging USD/TRY to fresh multi-day lows in the 4.54 area, where its seems to have met decent contention.
USD/TRY upside capped around 4.8000
The Turkish currency has given away initial gains and is now prompting the pair to move into the positive territory for the first time after three consecutive daily pullbacks.
TRY advanced to the 4.54 area earlier in the day as market participants continue to digest President Erdogan’s win in the parliamentary and presidential elections in Turkey. Erdogan renewed its position for an extra 5-year term, winning with around 53% of the votes.
Turkish assets, however, are expected to remain under pressure and investors’ focus should remain on TRY, the recent tightening measures by the Turkish central bank and potential announcements by the government.
In the data space, Trukish Capacity Utilization and Manufacturing Confidence for the current month are due later. In the US, New Home Sales for the month of May are next on tap.
USD/TRY key levels
At the moment the pair is gaining 0.13% at 4.6837 facing the next hurdle at 4.6959 (10-day sma) seconded by 4.7763 (high Jun.19) and then 4.8032 (high May 24). On the downside, a breach of 4.5343 (low Jun.25) would open the door to 4.4510 (low Jun.7) and finally 4.4410 (low May 30).
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