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USDTRY Settles After Stunning 23% Intra-Day Reversal

TURKEY
  • USDTRY settling now just above the 15.00 mark following a significantly volatile selloff to lows around 14.30.
  • The comments from Erdogan sparked some renewed optimism for the Lira, with understandably poor liquidity exacerbating the price action.
  • The government announced measures including the introduction of a new program that will protect savings from fluctuations in the local currency. The government will make up for losses incurred by holders of lira deposits should the lira’s declines against hard currencies exceed interest rates promised by banks.
  • The pair reversed most of the prior weeks rally, roughly 23% off the intra-day high.
  • As a reference point, support to watch is seen at the 20-day EMA that intersects at 13.6069.

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