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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
TURKEY
- USD/TRY continues to drift higher in early trading as weaker risk sentiment filters through from the APAC session.
- High nominal yields were insufficient to shield the high-beta currency from yesterday's bout of volatility post-US CPI, resulting in the -1.78% depreciation vs the USD.
- Notable underperformance was mostly due to the weaker local story, CBRT credibility deficit and expectations for a premature easing cycle – leaving TRY more vulnerable and relatively less attractive than its EM peers ZAR & RUB.
- Price action cleared the topside of the flat-sided ascending triangle pattern noted yesterday, forming a large bullish engulfing candle on the daily chart
- opening up scope for a more meaningful move higher on a close above 8.50.
- RSI is trading close to overbought levels at 67.21, MACD is making a bullish crossover, but above the signal line at 0.0962.
- Turkey's increasing involvement in rallying the Islamic world against Israel and criticizing the US is noteworthy after Erdogan suggested sending a peacekeeping force to defend Palestinians and slammed Biden for his "self defense" comments.
- Markets will eye US PPI data today for more risks to an expedited Fed hiking cycle precipitating volatility in UST yields.
- Intraday Sup1: 8.4397, Sup2: 8.3597, Res1: 8.4851, Res2: 8.50
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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