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USD/TRY Heavy After Breaking 7.00 Handle, US Relations in Focus

TURKEY
  • Local rates open mixed to lower across the curve, 2Y +4.0bp, 5Y -5.0bp, after being mostly offered during yesterday's session.
  • USD curve unch at the open after trading mixed to flat amid low volumes.
  • USD/TRY continues to trade heavy this morning after breaching the 7.00 handle in yesterday's risk-on session to break a consolidation pattern driven primarily by corporate $ demand above 7.00.
  • Relations with the US still a little frosty over S-400s and human rights issues in Blinken's call with Cavusoglu, and expanded US ties with Greece over East-Med issues.
  • Focus still remains on the CBRT this week, expected to keep rates on hold, with an off chance of a 50bp hike.
  • With the US back from yesterday's holiday focus will be on the $ for signs of continued risk-on in the greenback.
  • Sup1: 6.8568, Sup2: 6.7692, Res1: 66.9587, Res2: 7.00
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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