USD/TRY unstoppable, clinches historical tops near 3.4450

The initial strength of the Turkish Lira was ephemeral to say the least, as USD/TRY quickly rebounded to fresh all-time tops in the mid-3.4400s despite the CBR’s decision on rates.

USD/TRY supported near 3.3500

Following the short-lived appreciation to sub-3.3700 levels after the Turkish central bank (CBRT) hiked the Overnight Marginal Funding and the One-week Repo Rate, TRY has resumed its downside fashion vs. the buck, lifting USD/TRY to fresh all-time highs near 3.4450.

In fact, the Turkish currency suffered another hit after the European Parliament decided to freeze talks regarding plans of Turkey to become a member of the European Union.

It is worth mentioning that spot rose more than 11% since lows seen on November 1 around 3.09, all backed by the underlying bearish note around TRY (mainly due to political effervescence) and a solid performance of the greenback, particularly vs. its EM peers.

USD/TRY key levels

At the moment the pair is up 1.04% at 3.4307 facing the next resistance at today's top at 3.4444 followed by… the moon?. On the downside, a break below 3.3490 (low Nov.22) would expose 3.2457 (20-day sma) and finally 3.1071 (55-day sma).