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USD/TRY Remains Subdued as Greece/US Tensions Flare

TURKEY
  • USD/TRY opens slightly higher after dipping towards the 7.00 handle in yesterday's session, but failing to break below.
  • Data printed better than expected across the board this morning in terms of the 12m inflation forecast, industrial production and current account, but saw little effect on TRY which remains largely subdued.
  • Tensions still rising with Greece over Cyprus and Turkey has held firm on its S-400 purchases, which will likely result in a more hardline stance from Biden, when he turns his full focus to Turkey.
  • Focus shifts to next week's CBRT for new catalysts as markets look to Agbal for signs of more tightness to combat sticker than expected inflation as Erdogan pressure to cut rates looms in the background.
  • Cross remains pegged in its lateral range, grinding lower. Sup1: 7.0085, Sup2: 6.8889, Res1: 7.1228, Res2: 7.1901
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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