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TRY Brushes Off EU Membership Threats, Back Below 8.40 on $ Weakness

TURKEY
  • USD/TRY opens lower after a volatile risk-off session yesterday heading into the FOMC minutes.
  • Spot has pulled back below the 8.40 handle this morning, following selling pressure on the dollar – supporting EMFX across the board.
  • Talk in the FOMC minutes regarding talk of QE tapering were considered hawkish as inflation concerns continue to brew in US markets.
  • Turkey-EU relations hit another snag with EU parliament members threatening to suspend Turkey's EU membership bid if the current 'negative trend' continues – adding to recent friction with the US.
  • Moreover, many experts remain sceptical about Turkey's ability to contain the virus before tourist season begins, which would deal a significant economic blow to the ailing economy and widening current account deficit.
  • Price action remains pegged within the ascending flat-sided triangle pattern for now.
  • Intraday Sup1: 8.3597, Sup2: 8.3319, Res1: 8.4345, Res2: 8.4851
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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