USD / TRY retreats from all-time highs, again below 8.45

  • USD / TRY didn’t hit an all-time high today … for now.
  • Investors are keeping an eye on the results of the US elections.
  • The Turkish central bank remains at the center of the debate.

The lyre it manages to dodge another all-time low against the dollar, and that’s news Wednesday. In fact, the USD/TRY it is trading in a negative tone, although below Tuesday’s highs near 8.55.

USD / TRY focused on US elections, CBRT

USD / TRY resumes higher after Tuesday’s small pullback despite hitting new all-time highs at levels just below 8.55.

Meanwhile, the currency remains under pressure from rising inflation, the persistent drain on foreign exchange reserves, and negative real interest rates. It’s worth noting that Tuesday’s inflation figures saw the CPI rise nearly 12% in a year through October, well above the central bank’s 5% target.

Going back to the US elections, a Biden victory could increase the likelihood of sanctions against Ankara following the purchase of the Russian S-400 defense system.

So far, the lira is the currency of the worst performing EMs, losing nearly 30% this year. The pair has gained nearly 10% since the CBRT disappointed market expectations at its meeting in late October.

Technical levels

At the moment, the pair is gaining 0.50% at 8.4329 and faces the next hurdle at 8.5434 (all-time high on Nov 3). On the downside, a drop below 7.7787 (Oct 22 low) would expose 7.6294 (Oct 1 monthly low) and finally 7.5082 (Sept 25 low).

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Credits: Forex Street

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