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Free AccessUSD/TRY Hits a Bump at 200dma; $ Factors in Focus
- Local curve mixed after selling activity pushed yields higher during yesterday's session after a higher than expected CPI print.
- Losses concentrated in 5Y +20bp.
- USD curve saw modest gains in the belly, and may see more modest inflows today over local GBs.
- USD/TRY opens lower in line with CEEMEA peers and a softer USD.
- Spot may remain choppy in the 7.4679-7.3484 range, pegged above the 200dma at 7.3243.
- CDS notched up during yesterday's session but is broadly expected to continue to compress in the near term in line with EM optimism.
- Limited local catalysts means USD drivers should dominate price action.
- Sell-side still favouring USD shorts, saying positioning is more neutral
- offering scope for more net shorts to be built.
- Move through the 200dma would be the trigger for more downside.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.