USD/TRY finds support near 3.5200 post-CPI

The Turkish Lira is losing upside momentum today, now helping USD/TRY to advance to the 3.5400 neighbourhood.

USD/TRY bid after CPI

TRY met extra selling pressure after Turkish inflation figures tracked by the CPI showed consumer prices rising at an annualized 11.89% during April and 1.31% inter-month (vs. 1.30% forecasted).

Further data saw Producer Prices in Turkey up 0.76% on a monthly basis and 16.35% over the last twelve months.

In the meantime, spot seems to have found some support around yesterday’s fresh 2017 lows in the mid-3.5100s, retreating for the fourth consecutive month after the rejection from February’s all-time highs just beyond the 3.9400 handle.

It is worth mentioning that the Turkish central bank (CBRT) raised the Late Liquidity Window Lending Rate by 50 bp at last week meeting, more than markets’ consensus, while leaving unchanged the O/N Lending Rate, the O/N Borrowing Rate and the One-Week Repo Rate.

USD/TRY key levels

At the moment the pair is gaining 0.25% at 3.5366 facing the next hurdle at 3.5565 (high May 2) seconded by 3.6411 (high Apr.24) and finally 3.6498 (55-day sma). On the other hand, a breakdown of 3.5160 (2017 low May 2) would open the door to 3.4500 (low Dec.13 2016) and then 3.3370 (low Dec.8 2016).