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USD/TRY Inches Closer to 9.00, Erdogan-Putin Meeting Sees Few New Developments

TURKEY
  • USD/TRY trades -0.15% lower this morning, testing yesterday's breakout through the 8.90 handle at the start of the session.
  • The cross rose +0.54% yesterday to reach a new all-time high at 8.9577, broadly in line with a firmer USD towards the end of the session. Erdogan's meeting with Putin seems to have been mostly constructive, but failed to address the pressing issue of S-400s.
  • Russia expressed its discontent RE drone sales to Ukraine, and both sides highlighted the need for a solution in Syria but no major developments seem to have come about as of yet.
  • Focus shifts to trade balance data due at 0800BST and PMIs tomorrow. USD/TRY continues to be biased higher, but will need to hold onto gains above 8.90 to take the next leg towards 9.00.
  • Economists also expecting headline to print higher at 19.7% in September, but see potential for the new CBRT benchmark in core inflation to decline slightly – providing more dovish space from the central bank.
  • Intraday Sup1: 8.8915, Sup2: 8.8017, Res1: 8.9577, Res2: 9.00
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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