USD/TRY plummets after referendum, around 3.67

The Turkish Lira is the best performer so far on Monday, up more than 2% vs. the buck and dragging USD/TRY to the 3.6700 region.

USD/TRY weaker on Erdogan’s victory

TRY gained extra traction on Monday after President R.T.Erdogan came victorious from Sunday’s referendum with more than 51% of the votes according to latest results.

With official results coming in any time now, the opposition party has already declared it will contest the ‘Yes’ win.

Let’s recall that the referendum consisted of a package of reforms sponsored by the ruling AKP that will mainly aim to replace the current system of parliamentary democracy with an executive presidency.

If these results are later confirmed (might take around 10 days), Erdogan could extend its power until 2029, if he wins the next elections in 2019 and 2024.

USD/TRY key levels

At the moment the pair is losing 2.05% at 3.6708 and a breakdown of 3.6309 (low Apr.17) would open the door to 3.6200 (low Apr.3) and then 3.5837 (low Mar.27). On the other hand, the next up barrier is located at 3.6803 (high Apr.17) seconded by 3.7376 (high Apr.14) and finally 3.7447 (high Apr.7).