- USD/TRY consolidates weekly losses near record top, sidelined of late.
- Fitch says Turkey’s ‘premature’ rate cut risks higher inflation.
- Turkish President Erdogan lauds global investor confidence in Turkey.
- CBRT is up for another rate cut, Turkish Consumer Confidence and US data important too.
USD/TRY picks up bids around $9.2430, up 0.33% intraday ahead of Thursday’s European session. In doing so, the Turkish Lira (TRY) pair pares weekly losses ahead of the key monetary policy meeting of the Central Bank of the Republic of Turkey (CBRT).
The pair’s rebound could be linked to the comments from the global rating agency Fitch. “Turkey's interest rate cut last month risks pushing inflation higher than Fitch Ratings' estimate of 17.2% by year end,” said Fitch per Reuters.
The news also mentions the fact that President Recep Tayyip Erdogan has abruptly ousted the last three central bank governors and last week he fired three bank policymakers including two seen to oppose the September rate cut.
It was additionally mentioned, “Sources close to the presidency have told Reuters that Erdogan had pushed for monetary stimulus for months with the aim of boosting lending, exports and jobs.”
Even so, Turkish President Erdogan said, per Reuters, “International investors place their trust in Turkey, believing in its potential and bright future. President Erdogan addressed the party members at the AK Party Adana Extended Provincial Consultative Meeting.”
The US Dollar Index (DXY), on the other hand, refreshes a three-week low amid market optimism and a lack of directives ahead of Friday’s preliminary reading of October’s PMI data.
Looking forward, USD/TRY moves rely on the CBRT Interest Rate Decision, expected 17.5% versus 18.0% prior. Also important will be Turkey’s monthly Consumer Confidence data for October, prior 79.7. Although its least expected that the CBRT will defy the market forecast of a rate cut any surprises won’t be taken lightly.
Following that, US Jobless Claims, Philadelphia Fed Manufacturing Index and Existing Home Sales may entertain the pair traders.
Technical analysis
Overbought RSI conditions challenge USD/TRY recovery towards the all-time high of $9.3765. On the contrary, the 10-DMA near $9.1670 offers immediate support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD marks yearly lows near 1.0550 ahead of Eurozone Q3 GDP, US PPI
EUR/USD extends its decline for the fifth consecutive day, trading near 1.0550, marking fresh yearly lows during Thursday's Asian session. This downside of the pair is mainly attributed to the strengthening US Dollar, driven by "Trump trades."
GBP/USD extends downside below 1.2700 ahead of BoE's Bailey speech
The GBP/USD pair extends the decline to near 1.2685 during the Asian trading hours on Thursday. A rally in the US Dollar to the highest level since November 2023 weighs on the major pair. The Bank of England Governor Andrew Bailey is set to speak later on Thursday.
Gold price languishes near two-month low on bullish USD, elevated US bond yields
Gold price remains under heavy selling pressure amid the continuation of the Trump trade. The optimism over stronger US economic growth lifts the USD to a fresh YTD top on Thursday. Rising US bond yields also contribute to driving flows away from the non-yielding yellow metal.
XRP's open interest drops over 10% amid struggles near $0.7440 resistance
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.