- USD / TRY extends the decline and is approaching 7.70.
- Turkey’s GDP surprised to the upside in the third quarter.
- Turkey’s trade deficit narrowed to around $ 2.40 billion in October.
The buying bias around the Turkish currency holds good and solid for another session on Monday and drags the USD/TRY to multi-day lows near 7.70.
USD / TRY weak on USD sell, data
The lira gains additional ground at the start of the week after Turkey’s GDP figures showed that the economy expanded at an annualized 6.7% during the July-September period (from a 9.9% contraction), well above the initial estimates.
The additional data pointed out that the Turkish trade deficit narrowed to 42.37 billion during October (from a deficit of almost $ 5 billion).
Meanwhile, the pair falls back for the fourth consecutive session in response to widespread weakness hitting the dollar, while investor sentiment continues to support the lira following the recent orthodox turn by the Turkish central bank (CBRT) and the Erdogan Administration. .
Right now, the pair is shedding 0.14% at 7.7886 and a dip below 7.5657 (100-day SMA) would expose 7.5119 (monthly low on Nov 20) and then 7.3970 (horizontal support line from the top of August. ). In the other direction, the next obstacle arises at 8.0423 (weekly maximum of November 24) followed by 8.5777 (historical maximum of November 6) and finally 9.0000 (psychological obstacle).