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USD/TRY Dials in on CBRT; Agbal May Be Undeterred by Erdogan Pressure

RUSSIA
  • USD/TRY opens lower following Yellen's opening speech as $ selling accelerates into today's session on stimulus expectations.
  • Uncertain relations with the US is a concern brewing in the background for now while Biden settles into office, but a definite obstacle for 2021.
  • For now, focus remains on this week's CBRT where Agbal is broadly expected to take a more balanced approach and hold rates steady, despite divergent calls for +50-100bp to offset recent dovishness from Erdogan.
  • Failure to move above 7.4859 leaves bearish momentum in the driver's seat and may see spot drift towards lateral support at 7.4117 followed by the 200dma (7.3607) for a fourth retest.
  • No data today leaves $-side factors as the key price action driver.
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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