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USD/TRY Faces Psychological Support at 8.50 Ahead of Erdogan Visit to Cyprus

TURKEY
  • USD/TRY remains mostly flat around the open, hovering above yesterday's lows near 8.55.
  • TRY has outperformed vs the USD this week (+1.42%) against a broadly weaker EM complex as dovish impetus from the CBRT comes out of the key drivers for TRY weakness in the near-term on expectations for higher CPI over the summer.
  • The cross is currently flirting with its 50dma, and psychological support at 8.50.
  • With the CBRT in the rear-view mirror, next week's focus shifts to Erdogan's address in Northern Cyprus (20 July) following more aggressive rhetoric regarding drilling operations in the East Med that could see tensions with the EU & US escalate.
  • Today we receive budget balance and housing price index data.
  • Intraday Sup1: 8.5560, Sup2: 8.50, Res1: 8.5808, Res2: 8.6399
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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