USD/TRY bounces off lows, retakes 3.06

After bottoming out in the vicinity of 3.05, USD/TRY has now managed to gather some attention and it has returned to the 3.06 handle.

USD/TRY weaker post-CBRT

TRY has quickly appreciated towards the 3.05 handle vs. its American peer after the Turkish central bank (CBRT) left unchanged its monetary status quo at today’s meeting.

The CBRT left the Overnight Marginal Funding Rate at 8.25%, the Overnight Borrowing Rate at 7.25% and the One-week Repo Rate at 7.5%. Market consensus was expecting the CBRT to cut by 25 bp the O/N Marginal Funding Rate.

The central bank justified its decision on the lack of improvement in inflation expectations. The CBRT has thus reiterated that future moves in rates remain ‘data dependent’ and conditional to the inflation outlook.

USD/TRY key levels

At the moment the pair is losing 0.05% at 3.0603 and a break below of 3.0426 (20-day sma) would expose 3.0320 (low Oct.7) and finally 2.9872 (55-day sma). On the flip side, the next up barrier is located at 3.1145 (all-time high Oct.18).