- USD / TRY remains sideways, near highs.
- The lira temporarily favored following announcements from the central bank.
The USD / TRY is consolidating a rapid recovery after falling to daily lows at 8.6565 and it continues to trade around 0.8700, as it has been doing since the beginning of the week.
The dollar has general support in the face of a climate of caution among investors and the Federal Reserve’s stance. The dollar index is in the zone of three-month highs above 92.50.
The lira It had twists and turns at the beginning of the European session, in response to measures announced by the Central Bank of the Republic of Turkey (CBRT), in an attempt to strengthen lira holdings in the banking system. The CBRT said it would increase the required reserve ratios on foreign currency deposits.
Now the market is waiting for US data (jobless claims and ISM manufacturing). Friday will be the key employment report with nonfarm payrolls.
USD / TRY technical levels
The 21-day daily moving average (DMA) to the upside at 8.6351 continues to limit the pullbacks. Any sustained move below the latter could trigger a strong sell towards the 50-day average bullish at 8.45. Alternatively, confirmation above the horizontal trend line resistance at 8.80 could expose 9.00.
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