USDTRY
USDTRY trades almost unchanged after a sharp drop and rebounds as the central bank of Turkey cut the benchmark rates by 200 bps to 12% from 14% below the market expectations of a rate cut to 12.5%. The bank noted that recovery in economic activity continues while the global economic outlook weakens. The bank reiterated that would continue to use all instruments to achive its targets, the price and financial stability.
The central bank of Turkey (CBRT) cut interest rates by 250 basis points, in its previous policy meeting to 14%. In 2019 the CBRT cut interest rates by 9.5 percentage points in an attempt to revive Turkey’s struggling economy.
USDTRY technical outlook is positive as the intraday pressures stalled at the 50-day moving average at 5.7720, from that point started a rebound back to where it started the day. As of writing USDTRY trades 0.08% lower at 5.7937, keeping the bullish momentum intact.
On the upside, immediate resistance for USDTRY stands at 5.8038 the daily top, the next level for bulls to watch is the 5.8167 monthly high. In case that the pair breach that level then a move up to 5.8640 the top from October 21st looks possible.