USDTRY retreats after four consecutive positive sessions. USDTRY gives up 0.26% at 5.7635 halting the rebound from four-week lows. President Erdogan, in an interview, argued that interest rates and inflation are on the path to desired levels “despite all the pressures” and both will fall to single digits the next year, adding that the fall in interest rates and inflation will be permanent.
Turkey Economic Confidence Index came in at 91.3 for November beating expectations of 89.8 Earlier this week the Turkey Manufacturing Confidence increased to 100.9 in November from previous 102.
The central bank of Turkey cut benchmark interest rates by 250 basis points, in its last policy meeting to 14%. In 2019 the central bank of Turkey cut interest rates by 7.5 percentage points in an attempt to revive Turkey’s struggling economy.
USDTRY technical outlook remains bullish despite today’s pullback as the pair trades above the 100-day moving average. On the downside, immediate support stands at 5.7606, while a break below will open the way for 5.6853 the November low. Next level to watch is the September lows at 5.6420.
On the other hand, first resistance for USDTRY stands at 5.7701 the daily high, at 5.7975 yesterday’s high would be the next supply zone followed by the resistance at 5.8618 the high from October 21st. Bears might initiate a short position if the pair crosses below the 50-day moving average at 5.7568.