USDTRY Higher After Weak Turkish Industrial Production – US December CPI Inline
USDTRY adds 0.40% at 5.8869 after the Turkish industrial production came in below expectations in November. Turkish industrial production rose by 5.1% year-on-year. Economists expectations were for industrial production to have risen 6.2%.
The mining index registered a year-on-year rise of 7.2%. The manufacturing production rise by 5.3%. On the other hand the Durable Consumer Goods dropped 13.1%. Non-durable consumer goods and capital goods increased by 5.2% and 7.5% respectively.
US December CPI Inline
The United States Consumer Price Index (CPI), year over year, came in at 2.3% in line with forecasts for December. The monthly reading registered at 0.2% below the expectations of 0.3%. The Consumer Price Index ex Food & Energy came in at 0.1% below market consensus of 0.2%.
USDTRY continue the rebound from monthly lows at 5.8521 after the sharp correction the previous week from six-month highs. The technical outlook for USDTRY is bullish despite the two days sharp correction.
On the upside, initial resistance for the pair stands at 5.8975 the daily top. Next level on the upside for the bulls to watch is at 5.9147 the high from January 9th. The next hurdle will be met at 5.9758 the sixth-month highs.
On the contrary, first support for the pair will be met at 5.8788 the daily low. If the bear breaks below that support area the next target is at 5.8122 the 50-day moving average. The 100-day moving average at 5.7866 will be the critical support point, which if breached will cancel the bullish momentum.