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Lira Slides on Russian Threats to Global Gas Supplies

TURKEY
  • USD/TRY trades +0.06% higher this morning with price action holding just above the 14.80 handle.
  • The cross stands +0.48% above Friday’s close with upside momentum holding.
  • Gazprom’s halt on gas supplies to Poland & Bulgaria has driven gas prices higher this morning, adding pressure on net importers, such as Turkey.
  • Trade balance data due tomorrow is likely to reflect the increased pressure on Turkey’s BOP as a result of soaring import prices as the deficit rises to $8.2bn in March.
  • USD/TRY continues to rise towards 14.85-15.00 where state banks and the CBRT were actively defending the currency in March.
  • USD/TRY should continue to trade in line with global risk sentiment, but be especially vulnerable to rising energy prices as Russia threatens global supplies.
  • Intraday Sup1: 14.792, Sup2: 14.7811, Res1: 14.8138, Res2: 14.8366, Res3: 14.8531
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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