USD/TRY bounces off lows post-CBRT

The Turkish Lira is sharply higher vs. the greenback on Thursday, dragging USD/TRY to daily lows in sub-3.3700 levels.

USD/TRY weaker on CBRT decision, USD

TRY has abruptly gained traction after the Turkish central bank (CBRT) has raised the Overnight Marginal Funding Rate to 8.50% from 8.25% and the One-week Repo Rate to 8.0% from 7.50%. The CBRT left intact the Overnight Borrowing Rate at 7.25%. The CBRT decision has surprised markets, as prior surveys were pointing to an ‘on hold’ stance at today’s meeting.

Further news regarding Turkey saw the European Parliament voting to urge a temporary freeze to the country’s EU membership talks, somewhat limiting TRY gains.

Spot is coming down after recording (once again) fresh all-time highs above 3.4200 in early trade, following a moderate pick up in the selling pressure around the buck.

USD/TRY key levels

At the moment the pair is losing 0.03% at 3.3941 and a break below 3.3490 (low Nov.22) would expose 3.2457 (20-day sma) and finally 3.1071 (55-day sma). On the other hand, the next resistance lines up at 3.4215 (all time high Nov.24).