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  • USD/TRY sticks to the consolidative range around 7.80.
  • Turkey’s inflation figures rose more than expected in November.
  • Cautiousness remains the name of the game ahead of CBRT event.

The Turkish lira regains some buying interest in the second half of the week and prompts USD/TRY to reverse part of the recent advance.

USD/TRY capped by 7.90 so far

USD/TRY grinds lower and reverses at the same time three consecutive daily pullbacks, although the recent price action remains within a consolidative range so far capped by the 7.90 area.

In the meantime, the cautious stance prevails among investors ahead of another key meeting by the Turkish central bank (CBRT) on December 24. Indeed, market participants will closely follow the CBRT event and look for further confirmation of the recent orthodox turn from the central bank.

Earlier in the session, Turkish inflation figures showed consumer prices rose 2.3% MoM in November and 14.03% from a year earlier, both prints coming in above expectations. Additionally, Producer Prices rose 4.08% inter-month and 23.11% over the last twelve months.

USD/TRY key levels

At the moment the pair is losing 0.74% at 7.7880 and a drop below 7.5947 (100-day SMA) would expose 7.5119 (monthly low Nov.20) and then 7.3970 (horizontal support line off August’s top). On the flip side, the next resistance emerges at 8.0423 (weekly high Nov.24) followed by 8.5777 (all-time high Nov.6) and finally 9.0000 (psychological hurdle).