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TRY Shows Resillience vs EM Peers; Brushes off EU Steel Tariffs

TURKEY
  • Local & USD rates Unch this morning following a choppy session yesterday on mixed global risk sentiment.
  • Local curve outperforming USD, with 7Y -8.0bp.
  • USD/TRY opens lower after a late-session pullback to test the break of the 200dma.
  • Spot now trading below 7.30, and is looking the most resilient among the EM high-beta basket to USD/side developments.
  • Concerns over US rioting & instability will remain in focus today, but sell side remains very constructive on TRY assets.
  • EU levies on Turkish steel caused a bump this morning and may see a reaction from Erdogan add some volatility to the mix as EU-Turkey relations become strained on another issue.
  • Calm markets will likely see the cross drift lower towards 7.2077, but more $ buying may slow downside in the cross.
  • SUP1: 7.2077, SUP2: 7.1345, RES1: 7.3109, RES2: 7.3483
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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