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Turkish Lira Gets a Breather Below 5.77

Turkish Lira Gets a Breather Below 5.77
Turkish Lira Gets a Breather Below 5.77

USDTRY is under selling pressure today giving up 0.51 percent at 5.7608. Macro data from USA yesterday disappointed USD investors as the New Home Sales Change (Month on Month) came in -7.8% lower at 0.626M below economist’s forecasts of 1.9% and 0.68M for May. The United States Richmond Fed Manufacturing Index came in at 3 below analyst’s forecasts of 5 for June. The consumer confidence weakened in June with the headlines Confidence Index dropping to 121.5 in June from 131.3 in May. Turkey’s Central bank kept the one-week repo rate at 24% earlier this month. CBRT will continue to support the current tight monetary conditions. Imamoglou victory in the Istanbul mayoral election also helped the Turkish Lira. Turkish economy facing numerous problems from US threats for sanctions because of the Russian S400 defense system, to tensions in the Aegean and the Mediterranean Sea with Greece and Cyprus as drillings in the area continues by the biggest oil companies.

On the technical side the pair will find support at 5.67 the 100 day moving average while more bids will emerge at 5.56 where the 150 day crosses. On the upside first resistance stands at 5.91 the 50 day moving average, then at 6.00, the high from May 30, while more resistance will be met at 6.19 the high from May 8th.