- USD / TRY remains in the consolidation range around 7.80.
- Turkey’s inflation figures rose more than expected in November.
- Stealth is still the name of the game ahead of the CBRT event.
The Turkish lira recovered some buying interest in the second half of the week and boosted the USD/TRY to reverse part of the recent advance.
USD / TRY capped by 7.90 so far
USD / TRY was down and reversed three consecutive daily pullbacks at the same time, although recent price action remains within a consolidation range so far limited by the 7.90 area.
Meanwhile, the cautious stance prevails among investors ahead of another key Turkish central bank (CBRT) meeting on December 24. Indeed, market participants will closely follow the CBRT event and seek further confirmation of the central bank’s recent orthodox turn.
At the beginning of the session, Turkish inflation figures showed that consumer prices rose 2.3% month-on-month in November and 14.03% from the previous year, both figures exceeding expectations. Additionally, Producer Prices increased 4.08% month-on-month and 23.11% in the last twelve months.
Technical levels
Right now, the pair is shedding 0.74% at 7.7880 and a dip below 7.5947 (100-day SMA) would expose 7.5119 (monthly low on Nov 20) and then 7.3970 (horizontal support line from the top of August ). On the other hand, the next resistance emerges 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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