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WH Comments Rattle TRY Bulls

TURKEY
  • USD/TRY reverses yesterday's late-session push lower towards 3.3109 after comments from the White House placing Turkey alongside China as a key issue to be dealt with in EU-US ties - offsetting much of the TRY positivity delivered by Agbal yesterday.
  • USD/TRY is trading +0.45%, broadly higher than its CEEMEA peers - bucking early $ weakness.
  • However, Agbal's stabilising comments yesterday have reinforced the CBRT's commitment to keep real rates positive and the return to the hunt for yield on improved risk sentiment should favour TRY (second highest carry in EM space).
  • Spot now trading below 7.3876 resistance after making a promising break through the 200dma but stopping short of 7.3109 support.
  • We'll need to take out 7.3483 to see an another attempt at the next leg lower.
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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