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USD/TRY Rangebound Ahead of CBRT, Kavcoglu Faced with Renewed CPI Pressures

TURKEY
  • USD/TRY trades mostly flat around the open, having pulled back from 8.70 resistance in Friday's session.
  • The cross remains within its broad lateral range between 8.60-8.80 ahead of this week's CBRT, which should draw the most focus this week.
  • Kavcioglu is expected to keep policy rates unchanged at 19.00%, but may need to ramp up hawkish rhetoric in the face of renewed overshooting pressures in domestic CPI.
  • Beyond the CBRT, markets will digest unemployment data today and industrial production tomorrow.
  • Tensions with Greece continue to flare over the weekend, with tit-for-tat comments being made in the wake of threats from Erdogan that Turkey would continue to drill for oil in the East Med.
  • Intraday Sup1: 8.6399, Sup2: 8.5808, Res1: 8.6738, Res2: 8.6927
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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