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USD/TRY Pressures 8.40 as Fed Hawks Spark Volatility Pre-Jackson Hole

TURKEY
  • USD/TRY trades flat around the open, mostly brushing off early choppiness in the BBDXY.
  • The cross pared an early move towards 8.35 in yesterday's session as surprise comments from Fed Hawks Bullard and Kaplan called for an immanent announcement of the taper in September followed by a gradual 8-month implementation from October – sparking some intraday volatility and catching markets somewhat off guard.
  • Focus will undoubtedly be on Fed Chair Powell today, with risks that markets could be once again caught off guard with broad expectations having aligned with the meeting being a non-event and light on details.
  • In a blow to domestic tourism, the UK failed to remove Turkey from its travel redlist, despite confidence from HealthMin Koca.
  • USD/TRY remained below 8.40 yesterday, but buying pressure on moves lower has seemed more robust in recent sessions – with downside supports becoming more sticky.
  • Intraday Sup1: 8.3649, Sup2: 8.3337, Res1: 8.4021, Res2: 8.453
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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