Chart of the day - USDTRY (02.12.2021)

Turkish lira is drawing a lot of attention as of late, thanks to the shenanigans of the Turkish president. Erdogan continues to exert pressure on the Central Bank of the Republic Turkey, saying that he will continue to fight high interest rates for as long as he is in the post. Intervention on the FX market made by CBRT yesterday provided only a short-term relief and TRY resumed slide against major currencies later on. Turkish currency continued to weaken further during the Asian session following reports saying that Erdogan has fired the Turkish finance minister, Lutfi Elvan, and appointed his deputy, Nureddin Nebati, for the post. The decision came after Erdogan and Elvan disagreed on the monetary policy outlook, especially aggressive rate cuts.

Taking a look at the USDTRY chart at H1 interval, we can see that the pair experienced massive moves yesterday when CBRT intervened. However, the pair has quickly recovered most of the losses. USDTRY tested 13.52 swing area this morning but failed to break above so far. However, 50-hour moving average (green line) acted as a support and the pair may be eyeing another test of the 13.52 area.

Source: xStation5