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USD/TRY Choppy, but Biased Lower Pre-CBRT

TURKEY
  • Minimal action in local & USD yields this morning amid thin seasonal volumes.
  • Yesterday saw the curve bull steepen at the front-end on improved risk sentiment and CBRT optimism.
  • USD/TRY opens flat but still holding its bearish bias into tomorrow's CBRT.
  • Choppy USD trading around stimulus developments, continues to keep EM inflows inconsistent
  • But local factors still paint a positive picture for TRY.
  • Topside resistance at 7.6711, 7.6933 keeping the cross pegged in a tight range.
  • Breaching the support band at 7.6275-7.6153 remains key to unlocking a move lower towards 7.53.
  • Expectations for 150-200bp 1w repo hike should keep the cross biased lower.
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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