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USD/TRY Approaches YTD Highs Following Hawkish FOMC Minutes

TURKEY
  • USD/TRY trades +1.45% higher this morning, having taken a leg above 13.50 in the lead-up to the FOMC minutes.
  • The cross closed +1.82% higher yesterday as the Fed signalled 3 potential hikes in the pipeline for 2022 and reaffirmed the need to expedite tapering – adding impetus to a late session rally in the USD that has followed through to this morning.
  • Broad-based risk-off also hit APAC indices this morning following a rout in US tech stocks – sparked by new year rotations and expectations for Fed tightening – which should continue to weigh on sentiment for EM today.
  • USD/TRY is now approaching the 03 Jan highs and 14.00 handle and the cross grinds higher with little protection from its deeply negative real yields.
  • Intraday Sup1: 13,6614, Sup2: 13.5745, Res1: 13.9356, Res2: 14.21, Res3: 14.47
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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