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USD/TRY Bucks The High-Yield Trend as ZAR & RUB Steal the Spotlight

TURKEY
  • USD/TRY trading higher at the open, continuing the recent upwards bias slightly against the grain in the high-yield space, even after Powell's speech yesterday which pulled the greenback lower.
  • Focus remains on Greece & US relations as the US issues more S400s warnings and Greek jets harass Turkish research vessels.
  • CBRT activity this morning reducing FX/gold reserve requirements, raising TRY remuneration rates and required reserves also contributing to a bit of volatility.
  • TRY seems to have lost its appeal slightly having failed to decisively break 6.90, with sell-side favouring more clear cut ZAR & RUB plays.
  • Spot is now retesting the 7.1125 support level, and will need to close above today to see a resumption of the short-term uptrend.
  • Res1: 7.1733, Res2: 7.2002, Sup1: 7.1125, Sup2: 7.0793
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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