USD/TRY rises to 20.80 and marks another all-time high

• USD/TRY extends strong advance to near 20.80.
• The lira remains defensive and approaches 21.00.
• President Erdogan is expected to announce a cabinet reshuffle.

Another day, another all-time low for the Turkish Lira against the Dollar, which this time leads to the USD/TRY to trade near 20.80.

USD/TRY fixates on domestic politics

USD/TRY remains bullish unchanged and approaches the round 21.00 level as market participants continue to digest Erdogan’s election victory on Sunday and the latest news on possible cabinet changes.

As for the latter, and according to officials, it is very likely that M. Simsek, the former economics chief highly respected by financial markets for his expertise in orthodox policies, will be appointed to the cabinet, potentially as finance minister or as vice president.

Some positive news from the calendar showed that the economy expanded more than estimated at 4.0% yoy in the January-March period.

key levels

At the moment, the pair is gaining 1.45% at 20.6919 and faces the next hurdle at 20.7372 (31 May all-time high) followed by 21.00 (round level). To the downside, a break below 19.4286 (55-day SMA) would expose 19.1559 (100-day SMA) and finally 18.8321 (200-day SMA).