TRY Narrowing Gap With Last Week's Low

TRY offered in recent trade, helping boost USD/TRY to the session's best levels of 8.1623. Next major resistance rests at last Monday's highs of 8.4707 ahead of the 8.5793 cycle high posted in early November last year.

Offshore borrowing rates remain a key metric to watch. So far Monday, front-end implied yields remain contained for TRY, indicating there's been little squeeze on shorts so far this week, despite the tool being used frequently at the beginning of last week.

Overnight, BBG released a Q&A with the new Turkish CB governor Kavcioglu.
Highlights of the interview include:

• "In principle and ethically, I do not find it appropriate to comment on previous decisions."
• "I do not approve a prejudiced approach to MPC decisions in April or the following months that a rate cut will be delivered immediately."
• "the one-week repo rate will remain our main monetary policy tool"