USDTRY Drops Despite Worst Macro Figures from Turkey

USDTRY is under selling pressure since the pair broke below the 50 day moving average, and today the Lira is gaining momentum despite Turkey Industrial Production (YoY) came in worst than expected (-2.5%) in April, Actual (-4%). The Retail Sales in Turkey also contracting 1.8% inter-month and 6.9% over the last 12 months. Monday, Quarterly 3-month Jobless Average ticked lower to 14.1% in March and the Budget deficit shrank to $12.1 billion during May. The central bank of Turkey will continue to support the current tight monetary conditions. Turkey facing numerous problems from US threats for sanctions because of the Russian S-400 defense system, to tensions in the Aegean and the Mediterranean Sea with Greece and Cyprus as drilling in the area continues by the biggest oil companies.

On the technical side the pair will find support at 5.6450 the 100 day moving average while more bids will emerge at 5.5450 where the 105 day crosses. On the upside first resistance stands at 6.00, the high from May 30, while more resistance will be met at 6.19 the high from May 8th.