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USD/TRY Eyes 15.00 as Current Account Deficit Widens Sharply in Jan

  • USD/TRY trades +0.71% higher as price action continues to grind its way towards the 15.00 handle.
  • TRY was the notable regional underperformer yesterday, depreciating -1.42% vs the greenback as pressures continue to mount on the currency.
  • Erdogan used a phone call with Biden to press for inclusion back in the F-35 programme as his push to rebuild global relations continued this week with Israel as well with the aim of attracting investment and foreign currency to support Turkey’s BOP and the lira.
  • Despite brewing inflationary pressures, the CBRT is expected to keep its guidance unchanged next week with rates still on hold at 14.00%, despite soaring inflation and -40.44% negative real policy rates.
  • Current account data reaffirmed the issues facing turkey, printing at -7.11bn vs -3.8bn prior, exerting greater pressure on Turkey’s perilous negative net reserve position.
  • The CBRT & State banks may try to hold the 15.00 level, but should ultimately fail in the medium-term.
  • Intraday Sup1: 14.8366, Sup2: 14.7634, Res1: 15.00, Res2: 15.0688
MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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