USD/TRY bounces to 2.90 post-CBRT

The Turkish Lira is gaining ground vs. the dollar on Tuesday, dragging USD/TRY to the area of 2.8940 although rebounding after the CBRT decision.

USD/TRY lower on USD-selling, CBRT

Spot keeps the offered tone today following a broad-based selling interest surrounding the greenback amidst prevailing risk-on sentiment in the global markets.

In addition, the Turkish central bank matched expectations at its meeting today, reducing by 50bp its Overnight Marginal Funding Rate to 9.0%, while leaving intact the Borrowing Rate at 7.25% and the One-week Repo Rate at 7.5%.

USD/TRY key levels

At the moment the pair is retreating 0.32% at 2.8973 facing the immediate support at 2.8775 (low Jun.8) followed by 2.8736 (61.8% Fibo of 2.7865-3.0145) and then 2.8353 (78.6% Fibo of 2.7865-3.0145). On the upside, a break above 2.9230 (20-day sma) would pave the way for a test of 2.9600 (low Jun.16) and finally 2.9700 (high May 30).