USD/TRY tumbles to lows near 3.52 on GDP

The Turkish Lira now gathered extra pace and is dragging USD/TRY to test fresh daily lows in the 3.52 region.

USD/TRY lower post-GDP figures

TRY picked up further buying interest after GDP figures showed the Turkish economy expanded at an annualized 5.0% during the first quarter, more than initially estimated and up from the 3.5% gain in the previous reading. On a QoQ basis, the GDP grew 1.4%.

In the meantime, spot keeps navigating in the boundaries of 3.50, or 2017 lows, where it seems to have found some decent support.

TRY stays under scrutiny nonetheless, mainly from the geopolitical side, while pressure on the central bank remains unabated in light of the pick in inflation figures since December 2016.

Looking ahead, Turkish employment figures are due on Thursday along with the CBRT interest rate decision. In the US docket, the FOMC meeting and inflation figures tracked by the CPI are expected on Wednesday.

USD/TRY key levels

At the moment the pair is losing 0.42% at 3.5213 facing the next support at 3.4925 (2017 low Jun.5) followed by 3.4697 (200-day sma) and then 3.3370 (low Dec.8 2016). On the upside, a breakout of 3.5501 (20-day sma) would aim for 3.5587 (high Jun.7) and finally 3.5981 (55-day sma).