2022-12-16 • Updated
USD/TRY belongs to the exotic group of Forex currency pairs, that’s why traders don’t trade it regularly. However, these days this pair is in the focus of all the trading community!
The Turkish lira dropped to the all-time low of just over 13.00 as Turkish President Recep Tayyip Erdogan continued to defend the huge interest rate cuts by the central bank: three times since September. That drove up inflation to 20%. The Turkish lira has lost almost half of its value this year, making it the world's worst-performing currency.
Credit Suisse forecasts USD/TRY to reach 14.00 soon. The Central Bank of the Republic of Turkey (CBRT) needs to make a sizable rate increase to reverse the downtrend in USD/TRY. However, it is unlikely to happen soon.
Turkey is not the only country that will face an economic crisis. Indeed, the prospect for higher interest rates in the US is a negative factor for all these countries that have debt in US dollars. The Federal Reserve is expected to start slowing down the pace of its asset purchases already this month. Besides, the central bank plans to raise rates as soon as June 2022. It’s a bullish factor for the USD.
USD/TRY has reversed down after rallying for so long and dropped. However, it has stopped ahead of the significant support level of 12.00. The pair won’t cross it on the first try. The most likely scenario is that it bounces off and turns to the upside. The move above 12.50 will clear the way to the resistance zone of 13.00 and 13.15. Support levels are 12.00 and 11.50.
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Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
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Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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