USD/TRY surges to 20.80 and prints another record high
- USD/TRY extends the sharp advance to the vicinity of 20.80.
- The lira remains well on the defensive and approaches 21.00.
- President Erdogan is expected to announce a cabinet reshuffle.
Another day, another record low of the Turkish lira vs. the greenback, this time prompting USD/TRY to trade at shouting distance from the 20.80 zone.
USD/TRY looks at domestic politics
USD/TRY maintains the bullish move unchanged and approaches the round level at 21.00, as market participants continue to digest Erdogan’s victory at Sunday’s elections and latest news of potential changes to his cabinet.
On the latter, and according to officials, it is highly likely that M. Simsek, the former economy chief who is well-respected by financial markets for his orthodox policy expertise, will be appointed to the cabinet, potentially as either the finance minister or a vice president.
Some positive news from the calendar showed the economy expanded more than estimated by 4.0% YoY in the January-March period.
USD/TRY key levels
So far, the pair is gaining 1.45% at 20.6919 and faces the next hurdle at 20.7372 (all-time high May 31) followed by 21.00 (round level). On the downside, a break below 19.4286 (55-day SMA) would expose 19.1559 (100-day SMA) and finally 18.8321 (200-day SMA).