May 17, 2022 07:08 GMT
- USD/TRY trades +0.77% higher this morning, diverging the trend of firmer EM FX vs the greenback.
- The cross drifted +0.43% higher yesterday with a widening of the current account to $5.55bn adding weigh to negative sentiment driving TRY weakness.
- Erdogan continues to play power politics during the Ukraine crisis, seeking concessions of Nordic sanctions & PKK support before allowing Sweden and Finland to join the alliance.
- Upside momentum in USD/TRY remains robust with little standing in its way at this point as global financial conditions tighten.
- Sell-side analysts see the cross reaching as high as 19.00 in the next 6-months, making for a challenging period ahead for Turkey.
- Intraday Sup1: 15.6094, Sup2: 15.5673, Res1: 15.71, Res2: 15.75