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Choppy Trading Resumes in USD/TRY, Erdogan Eyes Social measures Amid Low Support

TURKEY
  • USD/TRY has started the week on choppy footing with price action getting bumpy within the 9.6249-9.7691 range.
  • The cross closed -0.13% lower in yesterday's session failing to take part in the more favourable global risk conditions with TRY sentiment still remarkably weak.
  • Overnight the CBRT raised its reserve requirement for FX deposits by +200bp, but has show little marginal effect on TRY this morning.
  • Moves to reduce electricity costs should be well-received by the public, amid historically low polling support for Erdogan, with some local analysts expecting Erdogan to begin pressing ahead with more social support initiatives next year ahead of 2023 elections.
  • Today's focus will be on US PPI, followed by CPI tomorrow for more USD side drivers.
  • The cross should continue to trade choppily within its current range with an upside bias going into the next CBRT meeting.
  • Intraday Sup1: 9.6726, Sup2: 9.6249, Res1: 9.7691, Res2: 9.85
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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