Free Trial

USD/TRY Retests 8.60, FOMC Taper Talk Today's Key Driver

TURKEY
  • USD/TRY trades lower at the open in line with early weakness in the BBDXY.
  • The cross retested 8.60 in yesterday's sessions as optimistic expectations unwound following the Biden-Erdogan meeting.
  • Today's focus will undoubtedly be on the FOMC meeting, before its shifts to the CBRT tomorrow.
  • On the FOMC front, we're watching for guidance on "talking about talking about" tapering, the Fed's outlook on transitory price pressures and more support for a 2023 hike in the dot plot – which will be the key USD-side driver today.
  • Tomorrow's CBRT is expected to be somewhat uneventful as Kavcioglu attempts to deliver a market stabilizer, nodding to the constructive CPI trajectory while trying not to sound overly dovish.
  • The 8.60 level may prove sticky in the near-term, but if breached, opens up a move back towards 8.70-8.80. Intraday Sup1: 8.4851, Sup2: 8.4345, Res1: 8.5808, Res2: 8.6399
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.