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USD/TRY Back above 8.30 Ahead of Key Data

TURKEY
  • USD/TRY trades higher at the open, retesting the 8.30 level having failed to close below Friday's low at 8.2259.
  • A lack of TRY positive catalysts and rocky global risk sentiment continues to cap USD/TRY downside.
  • Today's focus will be on the raft of domestic data and the CBRT minutes, with the current account deficit forecast to widen y/y and industrial production set to improve.
  • Weak CA dynamics are another key factor that is likely to weigh on TRY sentiment over the medium to longer term.
  • The improving Covid situation does bode well for Turkey ahead of the end of its lockdown period on 17 May, but whether other countries allow travel to fully reopen is a different story.
  • Additionally, tensions with Israel seem likely to escalate as the situation in the West Bank deteriorates.
  • Intraday Sup1: 8.3006, Sup2: 8.2493, Res1: 8.3319, Res2: 8.3597
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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