USD/TRY plummets to 2-week lows post-CBRT, around 3.6400

The Turkish Lira is trading on a firm note vs. the buck on Thursday, sending USD/TRY to test fresh lows in sub-3.6400 levels.

USD/TRY weaker on CBRT decision

TRY accelerated its weekly advance after the Turkish central bank (CBRT) left its monetary policy unchanged at today’s meeting, matching the broad consensus.

In fact, the CBRT left the Overnight Marginal Funding rate, the Overnight Marginal Borrowing Rate and the One-Week Repo Rate at 9.25%, 8.00% and 7.25%, respectively. Furthermore, the central bank, raised the Late Liquidity Window (between 4pm and 5pm) to 11.75% from 11.00%.

Spot sunk to fresh 3.6400 levels in the wake of the release, testing fresh 2-week lows and at the same time extending the decline after the rejection from last week’s peaks in the vicinity of the 3.80 handle.

USD/TRY key levels

At the moment the pair is down 0.93% at 3.6441 and a breakdown of 3.5591 (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 3.7041 (55-day sma) followed by 3.7624 (high Mar.14) and finally 3.7861 (high Mar.9).