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USD/TRY Holds Its Lateral Range, Dials in On Turkey-Greece Talks

TURKEY
  • USD/TRY opens 0.11% higher this morning in line with a firmer BBDXY in early trading.
  • Similar to TurkGBs, the cross traded choppily in yesterday's broadly risk-off session, ending +0.07% higher on the day after failing to break below Friday's low at 8.8321.
  • US equities continued to crater in the afternoon with stagflation concerns coming to the fore.
  • Meanwhile, Turkish assets brushed off higher headline and core CPI prints, given the CBRT's current indifference to 'transitory' price dynamics and focus on its new revisionist stance for monetary policy.
  • With little data on the agenda, the cross should track global risk sentiment and look ahead to Greece-Turkey talks tomorrow amid frayed ties.
  • This comes after Turkey escorted a Greek research vessel off its continental shelf yesterday, and has accused Greece of maximalist policies in recent months through its various military acquisitions and installations on disputed islands.
  • Upside momentum in USD/TRY has seemingly stalled, with the cross drifting sideways and slightly lower.
  • Key support stands at 8.8017 & key resistance at 9.00. Intraday Sup1: 8.8321, Sup2: 8.8017, Res1: 8.8915, Res2: 8.9371
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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