USD/TRY off highs, still above 3.54

The Turkish Lira is trading on the defensive vs. the greenback on Thursday, with USD/TRY currently hovering over the 3.5440 area after clinching tops near 3.5480 earlier in the session.

USD/TRY bid post-CPI data

TRY met fresh sellers after Turkish inflation figures gauged by the CPI rose in  line with expectations at a monthly 0.15% in July, reverting June’s 0.27% contraction. On a yearly basis, consumer prices rose 9.79%, missing initial estimates and down from June’s 10.90% advance.

Further data saw producer prices rising 0.72% inter-month and 15.45% over the last twelve months. Earlier in the week, July’s manufacturing PMI dropped to 52.3 from 53.10, adding to this week’s selling bias around TRY.

In the meantime, spot is advancing for the third straight session to multi-day tops just below 3.5500, while it remains well supported in the vicinity of the critical 3.5000 handle.

USD/TRY key levels

At the moment the pair is up 0.32% at 3.5436 and a breakout of 3.5534 (21-day sma) would aim for 3.5686 (high Jun.7) and finally 3.5787 (high Jul.26). On the other hand, the next support lines up at 3.5070 (low Aug.1) followed by 3.4888 (low Jun.14) and then 3.4725 (2017 low Jun.14).