USD/TRY consolidates around 26.00 ahead of Turkish CPI and FOMC minutes

• USD/TRY has frozen around 26.00 as investors await Turkish CPI data.
• S&P500 futures have posted nominal losses, portraying caution among market participants ahead of FOMC minutes.
• The US Dollar Index is showing signs of exhaustion in the upside momentum after reaching to near 103.20.

The USD/TRY pair is oscillating in a narrow range of around 26.00 in the early European session. The asset has turned sideways as investors are keeping an eye on the release of the Turkish Consumer Price Index (CPI) data.

As per the preliminary report, Turkish Statistical Institute would show a higher pace in monthly inflation at 4.84% against the 4.0% reported earlier. Annual CPI is expected to marginally decelerate to 39.47% vs. the prior release of 39.59%.

Investors should note that The Central Bank of Turkey raised interest rates sharply to 15% from 8.5% in its June monetary policy meeting. And consistent higher inflation could force The Central Bank of Turkey to raise interest rates further.

Meanwhile, S&P500 futures have posted nominal losses, portraying caution among market participants ahead of Federal Open Market Committee (FOMC) minutes. Investors would see a detailed explanation behind a steady monetary policy. Also, cues about interest rate guidance and the current economic prospects of the United States will be keenly watched.

The US Dollar Index (DXY) is showing signs of an exhaustion in the upside momentum after reaching to near 103.20. The yields offered on 10-year US Treasury bonds have jumped to near 3.85%.

Later this week, investors will keep focusing on the US ISM Services PMI data (June). As per the consensus, Services PMI is seen expanding to 51.0 vs. the former release of 50.3. While New Orders Index is seen declining to 53.3 against the prior release of 56.2.