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TRY Wobbles On Erdogan Comments, Nervously Eyes 15 April CBRT

TURKEY
  • USD/TRY trades flat to higher at the open, bucking a softer greenback as markets digest the brighter outlook highlighted in the FOMC minutes.
  • 8.20 proved a relatively sticky resistance level in yesterday's session, failing to break despite majorly dovish comments from Erdogan – alluding to goals for single digit rates and inflation.
  • Limited reaction to this suggests the proof remains in the pudding, with next week's CBRT meeting being a key display of CBRT credibility and Erdogan's influence over monetary policy.
  • Nevertheless, USD/TRY remains biased higher with few TRY-positive catalysts in the mix.
  • Yesterday saw four sessions of USD weakness halted with treasury yields rising into the close.
  • However, the sell side still sees recent $ weakness as corrective in nature.
  • Intraday Sup1: 8.1135, Sup2: 8.0236, Res1: 8.2046, Res2: 8.2538
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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