- USD / TRY loses more momentum and tests the 7.76 zone.
- Turkey’s economic sentiment index fell to 89.50 in November.
- The lira remains supported by the recent orthodox measures of the CBRT.
The Turkish lira extends the bullish momentum in the second half of the week and drags the USD/TRY to new 3-day lows at the 7.7600 level.
USD / TRY found resistance above 8.0000
USD / TRY was down for the third consecutive session on Friday and extends the downward correction from the weekly highs near 8.05 seen on Tuesday.
Investors continue to favor the lira’s momentum following the recent shift to a more orthodox monetary stance from the Turkish central bank (CBRT) and the pro-market message from the Erdogan administration.
In this direction, the CBRT will now apply the same mandatory reserve ratios and remuneration rates to all national lenders, seeking to boost credit to both consumers and businesses.
On the domestic agenda, Turkey’s economic sentiment fell to 89.50 for the month of November, adding to the drop observed in the manufacturing confidence indicator earlier in the week.
Key levels
Right now, the pair is shedding 0.37% at 7.8371 and a drop below 7.5568 (100-day SMA) would expose 7.5119 (monthly low on Nov 20) and then 7.3970 (horizontal support line from the top of August. ). In the other direction, the next obstacle arises at 8.0423 (weekly maximum of November 24) followed by 8.5777 (historical maximum of November 6) and finally 9.0000 (psychological obstacle).
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