USD/TRY toying with session tops beyond 3.5900

The Turkish Lira is sharply lower vs. the greenback on Tuesday, allowing USD/TRY to print fresh 2-day tops beyond 3.5900 the figure.

USD/TRY higher on USD-buying

The solid performance around the greenback as of late has been helping the pair to rally from 2017 lows in the 3.3840 area (early September) to last week’s tops in levels just below the psychological 60.00 handle, advancing at the same time for the fourth week in a row.

Today, TRY is also deriving weakness after Turkish inflation figures rose at an annualized 11.2% in September and 0.65% on a monthly basis (vs. 0.76% initially estimated). Further data saw producer prices up 16.28% YoY and 0.24% inter-month.

Furthermore, the persistent selling bias around crude oil prices is also impacting on the Turkish currency, as the barrel of European reference Brent crude is down for the second session in a row in sub-$56.00 levels.

USD/TRY key levels

At the moment the pair is up 0.61% at 3.5886 and a breakout of 3.5990 (high Sep.28) would aim for 3.6474 (high Jul.7) and finally 3.7447 (high Apr.7). On the other hand, the next support lines up at 3.5445 (10-day sma) followed by 3.5217 (100-day sma) and then 3.5015 (55-day sma).