USDTRY Slumps as Turkey’s Central Bank Cut Interest Rates 325 bp to 16.50%
USDTRY gives up 0.98% today at 5.6896 after CBRT delivers a 325 bp interest rate cut to 16.50% more than markets expected. Markets were expecting 300 basis points interest rate cut from 19.75%. Tayyip Erdogan has put pressure on central bank (CBRT) to cut interest rates as he wants rates to be back in single digits. The bull run from 5.45 recent lows (August 8th) stopped at 5.85, a zone where the pair rejected three times since August 27th. The pair accelerated the upward move after the price pierced the descending trendline from May 23rd.
On the technical side, the pair has trapped the last two weeks between the 100 and 200 day moving average. USDTRY will find support at 5.6727 the 200 day moving average while more bids will emerge at 5.60 the 50 day moving average. On the upside first resistance stands at 5.8169 today’s high, then at 5.79 the 100-day moving average, while more offers will emerge at 5.85 the high from August 27th.