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USD/TRY Makes a Run At the Top of its Lateral Channel, Bucking USD Weakness

TURKEY
  • USD/TRY trades +0.14% higher this morning, pushing back against early selling pressure on the BBDXY and firmer risk sentiment filtering through from the APAC session.
  • The cross made a run at the upper threshold of the lateral range in yesterday’s session, but failed to make a consolidated break of 13.6614 resistance.
  • Social pressures continue to build on the ground in Turkey with shop owners voicing their anger over the immediate VAT reduction, which will put a squeeze on profits amid soaring costs.
  • Surveys are showing an increasingly bleak picture of AKP support, which will only worsen as the inflation crisis becomes more protracted. Markets will keep an eye on Turkish diplomats in Israel today and tomorrow, alongside a raft of US data this afternoon.
  • USD/TRY remains within its lateral range, awaiting a breakout through 13.70 to open up the leg towards the prior highs at 13.9542.
  • Intraday Sup1: 13.5823, Sup2: 13.5489, Res1: 13.6344, Res2: 13.6795
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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