- The Turkish Lira looks for some stabilization around 4.5800.
- The pair stays sidelined between 4.6350 and 4.5550 so far today.
- TRY appears calm following recent CBRT monetary measures.
The generalized bid tone around the greenback is now lifting USD/TRY to the 4.58/4.59 band posting marginal gains for the day.
USD/TRY stable post-CBRT
Following last week’s all time highs beyond the 4.9200 level and the subsequent emergency rate hike and further monetary measures by the Turkish central bank (CBRT), spot seems to have met some consolidation in the near term.
In fact, daily charts keep showing the pair remains supported in the 4.53/55 band in past sessions, particularly after the CBRT raised rates by 300 bps last Wednesday and the central bank announced further monetary measures.
It is worth recalling that the CBRT raised the One-week repo rate to 16.5%, matching the previous increase in the Late Liquidity Window. In addition, the CBRT established a ±150 bps corridor to determine the overnight borrowing and lending rates.
Despite the current stabilization, TRY remains vulnerable to domestic politics, the upcoming elections next month and geopolitical concerns.
USD/TRY key levels
At the moment the pair is gaining 0.25% at 4.5938 facing the next hurdle at 4.7214 (high May 28) seconded by 4.9241 (all-time high May 23). On the flip side, a breach of 4.5375 (low May 22) would expose 4.4165 (21-day sma) and then 4.2197 (low May 10).
Share
