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USD/TRY Retests 8.50 on Strong GDP, S-400 Concessions a Key Development

TURKEY
  • USD/TRY trades a fraction lower at the open in line with a slightly softer USD.
  • Better-than-expected GDP figures injected some optimism back into TRY yesterday, bringing the cross back to 8.50.
  • While Greece-Turkey talks predictably yielded little progress, sending home Russian S-400 experts represents a positive step in Turkey-US relations ahead of Biden-Erdogan talks (14 June).
  • Additionally, further reopening from lockdown restrictions should provide more support to the ailing domestic economy.
  • CPI data this week remains the primary focus, with sell-side institutions expecting an uptick towards 17.25-17.4% this month, and stickiness in the 17-18% range given risks to higher USD/TRY passthrough to inflation in the coming months.
  • Intraday Sup1: 8.4851, Sup2: 8.4397, Res1: 8.5139, Res2: 8.5735
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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