USD / TRY retreats from daily highs near 11.2000

• USD / TRY joins the rally above 11.00
• The lira remains under heavy pressure after the CBRT rate cut.
• The resumption of buying dollars pushes the pair higher.

The lyre extends its march to the south and now pushes the USD/TRY to daily highs near 11,2000, where some resistance appears to have emerged for the time being.

USD / TRY rises due to weakness of the lira, upward trend of the dollar

The USD / TRY advanced for the ninth consecutive session on Friday, always supported by the indefatigable liquidation of the lira, although this time the strong rise of the dollar also helps the pair to extend the rally.

In fact, the current environment favors risk aversion and thus gives the dollar additional wings despite US yields trading defensively so far this Friday.

Meanwhile, the pair is trading slightly below Thursday’s all-time highs near 11,2800, recorded as a result of another reduction in the one-week repurchase rate by the Turkish central bank (CBRT) at its meeting. TRY losses have also been exacerbated after the central bank left the door (wide) open for another interest rate cut in the December event.

So far, the lira has lost more than 33% against the US dollar and remains the worst performing EM currency this year. The last time the couple moved forward for ten sessions in a row was in 2019, from April 18 to May 1. We are there … about to break another record.

Technical levels

So far the pair is gaining 0.35% at 11.1152 and a drop below 10.2276 (10-day SMA) would expose 9.8325 (Oct 25 high) and finally 9.4722 (Nov 2 monthly low). On the other hand, the next rising barrier is lined up at 11.2792 (November 18 all-time high) followed by 12.0000 (round level).