- USD/TRY refreshes all-time high amid two-day winning streak, grinds near the top of late.
- US Dollar pares recent losses as traders reassess Fed bets ahead of US inflation.
- Cautious mood, pre-event positioning also favor greenback buyers amid sluggish start to the key week.
- Preparations for more rate hikes from newly appointed CBRT Governor, geopolitical tension in Turkiye also justify Turkish lira’s latest fall.
USD/TRY stays on the front foot at the all-time high of around 24.00 as markets brace for this week’s central bank decisions and top-tier data during early Monday. That said, the Turkish Lira (TRY) pair refreshed the record high to 23.95 amid the US Dollar’s broad run-up before retreating to 23.62 heading into the European session.
That said, the Turkish Lira (TRY) pair previously ignored the appointment of a new Governor for the Governor of the Central Bank of the Republic of Türkiye (CBRT). The reason could be linked to the US Dollar’s broad rebound, as well as the TRY trader’s positioning for the rate hikes.
In the last week, Turkish President Erdogan appointed Hafize Gaye Erkan, a finance executive in the US to lead the CBRT while trying to reverse the course of previous rate cuts and battle with the heavy inflation at home. Additionally, news of a blast in a factory in the Turkish capital Ankara and the seizing of $1 billion of counterfeit Turkish money in Istanbul seem to also weigh on the TRY.
It should be noted that the markets remain dicey as traders await the US inflation data and the Federal Reserve (Fed) Interest Rate Decision. That said, Turkish Unemployment Rate and Current Account data for April can offer immediate moves.
US Dollar Index (DXY) dropped in the last two consecutive weeks, mildly bid near 103.60 at the latest, even as downbeat prints of the US activity numbers for May joined disappointing employment clues to weigh on the US Dollar. The reason could be linked to the market’s cautious mood ahead of Tuesday’s US Consumer Price Index (CPI) and concerns that the US employment and inflation conditions aren’t yet suitable for the rate hike pause. Recently, Former President of Boston Federal Reserve Bank, Eric Rosengren, tweeted in favor of expecting a hawkish skip this week.
That said, the latest United States Initial Jobless Claims jumped to the highest levels since September 2021 whereas the US ISM Services PMI, S&P Global PMIs and Factory Orders also printed softer outcomes for May and pushed back the Fed hawks, which in turn weighed the US Dollar.
While portraying the mood, the US Treasury bond yields grind higher and allow the US Dollar to lick its wounds even as Wall Street and S&P500 Futures prod greenback bulls by printing upbeat outcomes.
Technical analysis
Unless declining below the latest bottom surrounding 23.00, the USD/TRY pair remains on the way to refreshing the record top. That said, the 25.00 round figure gains immediate attention.
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.