Free Trial

USD/TRY Holds Its Lateral Range as Markets Digest the FOMC Minutes

TURKEY
  • USD/TRY trades flat around the open as early buying pressure on the BBDXY recedes somewhat after rising sharply in the lead-up to yesterday's FOMC.
  • The Minutes showed that some MPC members expecting earlier asset purchase tapering but fell short of speaking about timing or composition – resulting in a mixed net-effect on markets with EM FX trading choppily across the board this morning amid low liquidity conditions in EM.
  • Locally, Kabul airport talks seemed positive, but delivered no major results, while the EU's Borrell called Turkey out on political oppression of the HDP – but provided no official threats of action (as has been the historic tendency).
  • Today, markets will continue to digest the FOMC minutes with an eye towards expected inflation and current account data tomorrow.
  • USD/TRY remains pegged in its broad range, awaiting fresh catalysts to make a breakout in either direction.
  • Although the higher CPI print has seen a revision in dovish CBRT expectations, this has failed to translate into notable TRY strength so far.
  • Intraday Sup1: 8.6397, Sup2: 8.5808, Res1: 8.7488, Res2: 8.8008
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

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.