USDTRY Higher as Fitch Downgrades Turkey

Turkish lira (USDTRY) gives up over 0.22 percent against the greenback after Fitch Downgraded Turkey to junk status. Fitch warned of deteriorating independence and economic policy credibility after President Erdogan removed Cetinkaya as his central bank chief last week. Governor Cetinkaya, whose term was due to 2020, was replaced by deputy Murat Uysal, who was the deputy governor for three years and is one of the more dovish members of Policy Committee. Economists’, now looking Turkey’s central bank to start easing interest rates policy at July 25 meeting.

TRY lost over 8 percent of its value against greenback this year, the worst performer in emerging currencies after the Argentine Peso (ARS). On the technical side the USDTRY will find support at 5.5950 the 150 day moving average while more bids will emerge at 5.55 round figure. On the upside first resistance stands at 5.730 the 20 day moving average, then at 5.87, the 50 day moving average, while more resistance will be met at 6.19 the high from May 8th.Don’t miss a beat! Follow us on Twitter.