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NFPs in Focus as USD/TRY Toys with the 200dma

TURKEY
  • Local & USD rates mostly flat after tentatively outperforming EM high-beta peers in yesterday's session amid broad bear steepening.
  • USD/TRY trading flat to higher after pulling back from yesterday's move higher towards 7.40.
  • Sell-side still constrictive on USD/TRY shorts, with spot managing to close below the 200dma (7.3338) - keeping the downside bias mostly intact.
  • Vaccine rollout seems to be moving along efficiently and posturing towards discussions with Greece are notable, but may not see any reprieve in East Med frictions.
  • USD-side factors keeping EM FX broadly choppy with NFPs in focus today.
  • Failure to hold below the 200dma may peg the cross closer towards 7.40, but a move below 7.30 will likely see spot drift back to prior lows at 7.25 - 7.2077 SUP.
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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