- USD / TRY falls to the 8.4800 zone, 5-week lows.
- The sell off of the dollar helps the pair down.
- Turkey’s economic confidence improves in July.
The Turkish lira gains more rhythm and forces the USD/TRY to drop to new lows in the area below 8.5000 on Thursday.
USD / TRY down due to the USD sell-off
USD / TRY adds to Wednesday’s small losses and breaks below the 8.5000 support to trade at the levels last seen in mid-June.
The moderate post-FOMC pullback in the dollar contributes to new entrances to the EMFX space, where high-yields like the Turkish lira remain one of investors’ preferred currencies in these types of scenarios.
On the economic agenda, Turkey’s economic confidence improved to 100.10 in July (from 97.80). In the US, Q2 advanced GDP disappointed expectations with 6.5% and initial claims increased by 400,000 from the prior week, also disappointing estimates.
Technical levels
So far, the pair is losing 0.65% to 8.4960 and a drop below 8.4853 (monthly low on July 29) would point to 8.3442 (June 11 monthly low) and finally 8.2803 (June 11 monthly low) . On the other hand, the next barrier is at 8.5877 (50-day SMA) followed by 8.6256 (monthly high on July 26) and then 8.7974 (historical high on June 25).
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