USD/TRY weaker, retreats further to 3.6000

The Turkish Lira is gathering further traction at the end of the week, now dragging USD/TRY to fresh lows in the 3.6000 neighbourhood.

USD/TRY weaker on USD-selling, CBRT

Spot is losing ground for the third session in a row today, coming down to test fresh 2-week lows and extending the rejection from last week’s peaks in the vicinity of 3.8000 the figure.

The sell-off in the greenback in response to the FOMC fiasco on Wednesday remains the almost exclusive driver behind the pair’s very near term price action seconded by domestic factors.

Adding to the bid tone in TRY, President Erdogan’s Adviser said earlier in the European morning that the country keeps its growth target for this year at 4.4%, while it is seen growing at least 5% in 2018.

It is worth mentioning that the Lira gained extra traction after the Turkish central bank (CBRT) left unchanged its monetary conditions at yesterday’s meeting, although it raised the Late Liquidity Window (between 4pm and 5pm) lending rate to 11.75% from 11.00%.

USD/TRY key levels

At the moment the pair is down 0.34% at 3.6128 and a breakdown of 3.5640 (100-day sma) would expose 3.5552 (low Feb.23) and then 3.3370 (low Dec.8 2016). On the other hand, the next resistance aligns at 3.6692 (20-day sma) followed by 3.7053 (55-day sma) and finally 3.7861 (high Mar.9).