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Technical Unwind & Geopolitical Tensions Root Cause of USD/TRY Volatility

TURKEY
  • As mentioned earlier, USD/TRY move this morning looks to be combination of profit taking/technical unwind (having failed at the 7.50 handle) and increased geopolitical tensions over the weekend.
  • Geopolitical tensions refer to a confrontation between Greek & Turkish fighter jets in Greek territory - forcing Turkish fighters to retreat.
  • Spot now holding below 7.80 and 23.6% Fib level after a brief push higher towards 7.88 and the 100dma.
  • Sellers seeming to re-emerge slowly as markets come to terms with the spike higher. 100dma & 50dma forming a channel around price action.
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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