USD/TRY adds to Monday’s gains and approaches 8.0000. No extraordinary announcements seen from the central bank. The 10.00 level emerges as the next target of relevance. The Turkish lira remains well on the defensive in the first half of the week and now pushes USD/TRY to the vicinity of the 8.0000 mark. USD/TRY points to further gains near-term USD/TRY advances for the second session in a row on turnaround Tuesday, although it manages to keep business below the 8.0000 yardstick and Monday’s YTD highs near 8.3000 for the time being. The persistent buying pressure in the greenback coupled with increasing outflows from the Turkish currency favours the likeliness of extra gains in the pair in the near/medium-term. It is worth recalling that the lira fell off the cliff after President Erdogan sacked the former Governor of the Turkish central bank (CBRT) over the weekend. Erdogan replaced N.Agbal with S.Kavcioglu, the fourth central banker in the last five years. Kavcioglu, another advocate of the “higher rates equal higher inflation” church, faces a monumental task, which is restoring credibility and transparency to the CBRT, lowering the inflation and bringing in financial stability to the country. The outlook for the lira is now expected to deteriorate at a fast pace, as the currency is seen eroding the previous bout of confidence from Agbal’s orthodox approach sooner than later. What to look for around TRY There is no change in the offered note surrounding the Turkish currency for the time being. The new CBRT Governor S.Kavcioglu is expected to reverse (wipe out) the shift to a market friendly approach of the monetary policy that was successfully implemented by former Governor N.Agbal back in November 2020. President Erdogan’s appointment of Kavcioglu demonstrated once again whose hand is rocking the monetary cradle in Turkey and will most likely be the prelude of the return to unorthodox/looser measures of monetary policy in combination with rapidly rising bets of a balance of payments crisis and a drain of FX reserves. Against this backdrop, it will surprise nobody to see spot trading around 10.00 in the months to come. Key events in Turkey this week: March’s Capacity Utilization (Friday). Eminent issues on the back boiler: Potential US/EU sanctions against Ankara. Government pressure on the CBRT vs. bank’s credibility/independence. Bouts of geopolitical concerns. Much-needed structural reforms. Growth outlook vs. progress of the coronavirus pandemic. USD/TRY key levels At the moment the pair is up 1.44% at 7.8805 and faces the next up barrier at 8.2881 (2021 high Mar.22) followed by 8.5777 (all-time high Nov.6 2020) and finally”¦ the moon?. On the downside, a drop below 7.1856 (monthly low Mar.19) would aim for 7.0000 (psychological level) and then 6.8923 (2021 low Feb.16). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next S&P 500 Index: Further consolidation and range-trading to emerge – Credit Suisse FX Street 2 years USD/TRY adds to Monday's gains and approaches 8.0000. No extraordinary announcements seen from the central bank. The 10.00 level emerges as the next target of relevance. The Turkish lira remains well on the defensive in the first half of the week and now pushes USD/TRY to the vicinity of the 8.0000 mark. USD/TRY points to further gains near-term USD/TRY advances for the second session in a row on turnaround Tuesday, although it manages to keep business below the 8.0000 yardstick and Monday's YTD highs near 8.3000 for the time being. The persistent buying pressure in the greenback coupled with increasing… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.