The USD/TRY is a little changed ahead of the Turkish Central Bank (CBRT) interest rate decision set for 11:0 GMT. The Turkish lira is trading at 7.4147, which is in the same range it was in the past few days.
What’s happening: The Turkish Central Bank will conclude the meeting that started yesterday. It will then deliver its interest rate decision and provide guidance of key expectations of the economy.
Economists believe that the CBRT will leave interest rates unchanged, with the one-week repo rate staying at 17.00%. The overnight borrowing and overnight lending are also expected to remain at 15.50% and 18.50%, respectively. In its last monetary policy, the bank raised interest rates, which helped to support the Turkish lira.
USD/TRY CBRT prediction
On the daily chart below, we see that the USD/TRY has been in a tight range in recent days. The pair is trading at 7.4147, which is on the same level as the 25-day and 15-day weighted moving averages. Also, its volatility, as measured by the Average True Range (ATR) has dropped to the lowest level since November.
Therefore, there is a likelihood of a breakout happening later today. If it does, the key levels to watch will be the support at 7.23 and the resistance at 7.60, respectively.
USD/TRY technical chart