USD/TRY turns negative below 2.98 post-CBRT

USD/TRY has faded the initial spike to the boundaries of the 2.99 handle following the CBRT meeting.

USD/TRY clings to gains after CBRT decision

The Turkish lira is alternating gains with losses vs. the greenback after today’s CBRT decision.

In fact, the central bank reduced its Overnight Lending rate to 8.75% from 9.00%, and kept unchanged the Overnight Borrowing rate at 7.25% and the One-Week repo rate at 7.50%.

Despite TRY has already digested the failed attempt of a military coup over the weekend, it remains vulnerable due to its political effervescence.

USD/TRY key levels

At the moment the pair is retreating 0.07% at 2.9767 facing the immediate support at 2.9321 (55-day sma) followed by 2.9146 (200-day sma) and finally 2.8375 (post-Brexit low Jun.24). On the upside, a break above 3.0057 (‘Brexit’ spike Jun.24) would pave the way for a test of 3.0145 (high May 24) and then 3.0630 (2016 high Jan.20).