The news from G20 meeting in Osaka helped Turkish lira after President Trump assured Turkish President Erdogan that would be no economic sanctions for Turkey’s purchase of Russian S-400 missiles. Traders have sold Turkish lira up to 6.18 after reports said the United States had plans for economic measures against Turkey, including ban of its defense firms from the U.S. financial system.
Last week a positive surprise for the Turkish economy came from the Trade Balance figures that increased from previous -2.98 billion to -1.84 billion for May. Earlier today the Institute for Supply Management’s (ISM) Manufacturing PMI for June dropped to 51.7 from 52.1 in May but it is better than analyst’s forecasts of 51. Turkey’s Central bank kept the one-week repo rate at 24% earlier this month and I expect the CBRT to continue to support the current tight monetary policy. Imamoglou victory in the Istanbul mayoral election also helped the Turkish Lira.
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 pair will find support at 5.5684 the 150 day moving average while more bids will emerge at 5.56 round figure. On the upside first resistance stands at 5.9173 the 50 day moving average, then at 6.00, the high from May 30, while more resistance will be met at 6.19 the high from May 8th.Don’t miss a beat! Follow us on Twitter.