USD/TRY extends the upside to 9.7500, deflates afterwards
03.11.2021, 10:53

USD/TRY extends the upside to 9.7500, deflates afterwards

  • USD/TRY adds to Tuesday’s gains and approaches 9.80.
  • Turkey’s CPI rose less than expected in October.
  • Unconfirmed rumours regarding Erdogan’s death/severe illness re-surfaced.

The Turkish lira extends the bearish note for the second session in a row and pushes USD/TRY to the 9.75 region on Wednesday.

USD/TRY climbs to new multi-day highs

USD/TRY is up for the second straight session and now trades at shouting distance from the all-time peak near 9.85 recorded on October 25.

The re-emergence of rumours regarding President Erdogan’s death or severe illness condition seems to be adding extra pressure on the Turkish currency. It is worth noting, however, that these rumours are not new to the markets and that they remain unconfirmed.

On the domestic backyard, inflation in Turkey extended the uptrend in October, this time showing consumer prices rose 19.89% vs. the same month of 2020, a tad below forecasts for a +20.0% reading. On a monthly basis, the CPI rose 2.39%. Further data saw Producer Prices rising 5.24% inter-month and 46.31% over the last twelve months.

USD/TRY key levels

So far, the pair is gaining 0.66% at 9.6634 and a drop below 9.4128 (weekly low Oct.26) would aim for 9.3386 (20-day SMA) and finally 9.1965 (weekly low Oct.21). On the other hand, the next up barrier lines up at 9.8395 (all-time high Oct.25) followed by 10.0000 (psychological level).

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