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USD/TRY Stable Ahead of US CPI, CBRT

TURKEY
  • USD/TRY trades mostly flat at the open to stick within its lateral range, despite a firmer greenback and mixed risk sentiment out of APAC.
  • US CPI is the big-ticket item on the agenda for today with base effects taking the print above the 2% target at 2.5%.
  • Although the Fed has said it will look through transitory overshooting pressures, EM markets will be on guard for upside surprises that could cause volatility in US Treasuries.
  • Outside of this, Turkey produces industrial production data, set to weaken slightly, and the virus situation continues to worsen – dimming the outlook for a bumper 2021 tourism season.
  • Consensus seems to be building for a hold at the CBRT among the sell-side as Erdogan puts the brakes on tightening and rising CPI limits scope for cuts (MNI Preview due Wed).
  • Intraday Sup1: 8.1135, Sup2: 8.0236, Res1: 8.1793, Res2: 8.2046
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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