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Lira Sell-Off Gathers Pace as Outlook Darkens

TURKEY
  • USD/TRY trades +0.24% higher this morning, diverging from weakness in the BBDXY as the lira continues to be targeted.
  • The cross marked a new high at 15.3883 this morning and has gained +2.38% since Friday’s close.
  • Deeply negative real rates, widening trade deficits, rising inflation and resurgent dollarisation risks should keep the lira under pressure in the near-term with markets looking to fade bouts of lira strength.
  • Today’s focus will be on US CPI and USD-side price action. Intraday Sup1: 15.2134, Sup2: 15.1267, Res1: 15.3883, Res2: 15.50
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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