USD/TRY remains bid and approaches 10.0000

• USD/TRY rises to 9.9800 on Friday, new all-time high.
• Turkey Retail Sales rose 1.2% MoM in October.
• Industrial Production surprised to the downside.

The Turkish lira remains well on the defensive and lifts USD/TRY closer to the psychological 10.0000 mark on Friday.

USD/TRY now looks to CBRT

USD/TRY navigates the fourth consecutive session with gains at the end of the week and corrects lower after climbing as high as the 9.9800 level, or a new all-time peak.

The firmer stance in the greenback in past sessions, particularly in response to the multi-decade spike in inflation recorded during last month, sponsored the investors’ exodus from the EM FX space along with the rest of the risk-linked assets and put the lira under extra pressure.

Earlier on Friday, Turkey’s finmin L.Elvan ruled out speculations that the government was deliberately aiming at a weaker lira in order to support the country’s export sector, while he added that the economy could expand more than 9% this year and that the current account deficit is seen below 2% by year end.

In the domestic data space, Retail Sales expanded at a monthly 1.2% in October and 15.9% from a year earlier, while Industrial Production expanded 8.9% in the year to September. Additional data saw the End Year CPI Forecast rising to 19.31% (from 17.63%).

USD/TRY key levels

So far, the pair is gaining 0.62% at 9.9452 and a drop below 9.5911 (20-day SMA) would expose 9.4722 (monthly low Nov.2) and finally 9.4128 (weekly low Oct.26). On the other hand, the next up barrier lines up at 9.9794 (all-time high Nov.12) followed by 10.0000 (psychological level).