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TRY Cheers Reduced Reserve Requirements

TURKEY
  • Local & USD curve mixed as the 10Y local contract continues to drift higher towards 6.00.
  • USD/TRY continues to trade on local factors, pushing lower towards 7.80 on the CBRT's decision to raise reserve requirements and lower intermediation costs for banks in yet another move to reinforce policy orthodoxy and achieve price stability.
  • The cross is now well within the 50dma - 100dma channel (7.9197-7.5664) and may look to drift back towards the 100dma over next week.
  • The correction towards the 8.00 handle should have cleaned up positioning going forward, with continued real money flows noted by the sell-side throughout the week.
  • A move below 7.80 opens up 7.72 to the downside.
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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