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USD/TRY Holds Within its Lateral Range Ahead of Key Data

TURKEY
  • USD/TRY trades +0.29% higher this morning, paring most of yesterday’s initial move lower following US CPI, which saw markets boost Fed rate hike bets from ~5 to 7 in 2022.
  • The print precipitated extensive volatility in the aftermath with indecision in equities eventually ending in a -1.5-2.10% decline across major US indices – resulting in weaker risk sentiment in the APAC session.
  • Global markets will continue to digest this today and may see additional volatility into the weekend.
  • On the data front, markets will eye a potential deterioration in the current account balance, industrial production and the 12 months inflation outlook in Turkey as the economy shows signs of stress under rising inflation pressures.
  • CHP leader Kilicdaroglu has joined in protesting utility hikes and social discontent in Turkey seems to be growing over unaffordable price hikes.
  • USD/TRY remains within its lateral range (13.30-13.6614), but managed to return above 13.50 on USD strength.
  • Intraday Sup1: 13.5087, Sup2: 13.4668, Res1: 13.5745, Res2: 13.6091
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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