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TRY Over Sanctions Hurdles - Opens Up Cleaner Positioning into Year-end

TURKEY
  • USD/TRY opens lower to take out the weekly lows at 7.8175
  • outperforming CEEMEA peers and supported by a softer Greenback.
  • As mentioned yesterday, with watered down sanctions risks (mostly) in the rear view mirror
  • the way is paved for cleaner TRY positioning into year-end with more positive directionality and inflows emerging in yesterday's session.
  • USD/TRY currently holding above short-term bear trigger at 7.7950 opening up a more consolidated move lower to target the 100dma at 7.6912,
  • provided short-term resistance at 7.7721 is cleared with little difficulty.
  • Sanctions headline risks remain on an unexpected shift towards more damaging sanctions before March 2021.
  • Hawkish surprise from the Fed on an increase in the weighted ave maturity of asset purchases could spark some volatility across EM high beta.
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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