USDTRY Attempts a Rebound as France Pushes Turkey Sanctions
USDTRY is lower for a third straight day but the pair is looking to secure a low after France prepared to pursue sanctions against the country. France are expected to propose the measures next month, alongside Greece and Cyprus but have been unable to get the backing of other EU governments.
The move comes after Turkey’s President failed to heed warnings over the country’s standoff in the Eastern Mediterranean sea, where Turkey are embarking on oil & gas exploration. These actions are said to be a violation of Greek and Cypriot waters and sanctions will target the shipping, banking, and energy interests of Erdogan’s Turkey, which are vital to the exploration program.
The Lira has been gaining this week after the Turkish Central Bank minutes, where the bank has raised reserve requirements for bank transactions in order to boost Turkey’s ailing foreign currency reserves. The Lira saw big gains in the previous week after the CBRT moved back to rate rises in order to tackle inflation.
USDTRY Technical Outlook
USDTRY is moving lower for a third day but has bounced from the day’s lows. A further gain on the day could see the pair move back towards the 8.00 price and then the uptrend channel support near 8.20. The downside target is at 7.50. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.