USD/TRY retreats from tops near 5.24 post-CPI
- The Turkish Lira regains some ground post-CPI.
- The pair met strong support in the 5.16 area.
- Turkey CPI rose 20.35% YoY, a tad above estimates.
After clinching new daily highs in the 5.24 neighbourhood, USD/TRY has sparked a correction lower to the current 5.21 region following the release of inflation figures in Turkey.
USD/TRY upside capped near 10-day SMA
The Turkish Lira met fresh buyers in the boundaries of the 5.24 handle today after domestic inflation figures came in a tad above consensus in January. In fact, consumer prices rose at an annualized 20.35% during the first month of the year and 1.06% inter-month.
Further publications in the Turkish docket saw Producer Prices rising 0.45% MoM and 32.93% from a year earlier, while Exports came in at TRY 13.17 billion during last month from TRY 13.90 billion.
Today’s weak note around TRY also finds sustention in the down move in crude oil prices, with the barrel of European reference Brent crude gyrating around the $62.40 area.
USD/TRY key levels
At the moment the pair is gaining 0.32% at 5.2104 facing the next hurdle at 5.2551 (10-day SMA) seconded by 5.2975 (200-day SMA) and finally 5.3623 (high Jan.29). On the downside, a breach of 5.1594 (2019 low Jan.31) would expose 5.1304 (low Nov.29 2018) and then 4.7354 (low Jul.23 2018).
