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  • USD/TRY pushes higher and records peaks around 8.20.
  • TRY debilitates on geopolitical concerns, BoP crisis.
  • Turkish court sentences US worker to 5 years in jail.

The selling pressure around the Turkish lira increases by the minute and lifts USD/TRY to new all-time peaks around 8.20 on Tuesday.

USD/TRY focused on geopolitics, Balance of Payments

USD/TRY advances for the fourth consecutive session to levels well above the 8.00 mark, always on the back of mounting concerns over the (imminent?) probability of a balance of payments crisis, lack of credibility in the Turkish central bank (CBRT) and rising geopolitical concerns, with the US and the EU in the centre of the debate.

In addition, a Turkish court sentenced a US worker to 5 years in jail on terrorism charges, which opens at the same time another door to probable US sanctions (apart from those hovering around the country since the purchase of the Russian S-400 missile defence system).

USD/TRY key levels

At the moment the pair is gaining 1.39% at 8.1892 and faces the next hurdle at 8.2002 (all-time high Oct.27). On the downside, a drop below 7.7787 (low Oct.22) would expose 7.6294 (monthly low Oct.1) and finally 7.6124 (55-day SMA).