Some whipsaw price action seen in......>

TURKISH LIRA: Some whipsaw price action seen in USD/TRY since the beginning of

the week, with TRY gaining yesterday (outperforming broader DMFX and most EMFX)

as the Turkish banking watchdog looked to disincentivise speculative USD

purchases by extending the settlement date for transactions of $100,000 or more

from same-day settlement to t+1. Much of that move has been reversed Tuesday,

with USD/TRY rallying to touch 6.0917 as the Turkish central bank cut the swap

rate used in 1-week repo auctions to 24% from 25.5% previously. The first

operation using the new rate has already begun, with TRY 17bln offered.

-Despite the intraday chop, USD/TRY 1w vols are falling for a 10th consecutive

session, returning closer to the implied vol levels seen before blowing higher

in late March.

-Support for USD/TRY kicks in at 5.9571, with resistance seen above starting at

6.1853 (50% retracement of the 7.2362 - 5.1344).