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USD/TRY Drifts Higher as New Developments Fail to Inspire TRY Optimism

TURKEY
  • USD/TRY opens marginally higher, tracking early upside in the BBDXY despite firmer risk sentiment out of APAC this morning.
  • The cross continued to drift higher in yesterday's session, pressuring 8.8008 resistance.
  • Both the easing of restrictions in July and acknowledgment of greater migrant deal funding needs are positive developments for Turkey.
  • However, the build-up of negative sentiment against TRY on expectations for premature easing in the near-term remains the key driver for the pair at present
  • leaving a high bar for TRY positive catalysts to reverse the current depreciation trend.
  • Moreover, the acceptance of the HDP closure indictment may add frictions to ties with the EU & US on democratic backsliding which should also weigh negatively on TRY sentiment.
  • Intraday Sup1: 8.7488, Sup2: 8.6927, Res1: 8.8008, Res2: 8.9657 (Fib extension).
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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