2021-10-25 • Updated
The Turkish lira has been pressed by Turkey’s central bank (CBRT). It has recently announced a bigger-than-expected rate cut: twice as deep as analysts expected. The reduction occurred after President Erdogan fired central bank officials as opposed to his intention for lower borrowing rates. Most analysts and investment banks foresee USD/TRY to exceed the psychological mark of 10.00.
Bloomberg said, “there’s now a more than 60% chance that the lira will weaken to 10 before January”. SEB AB: “Unless the central bank signals an intention to slow the cuts, USD/TRY will spike well above 10.00”.Besides, today, the Turkish lira got another headwind from President Erdogan. He claimed he had ordered the expulsion of the US and Western ambassadors.
Though lower rates can support some businesses and consumers, economists believe it also pushes the already high inflation up which can soon make the central bank change track. Actually, Turkey is alone in cutting interest rates. Other central banks all over the world are raising rates to decrease rising global price pressures.
USD/TRY has become overbought and reversed down. The pair may drop to Friday’s low of 9.59. If it manages to fall below this support level, the doors will be open to the psychological level of 9.50. The long term remains bullish. Thus, after a short pullback, it should stick to its uptrend and reach 10.00 as many analysts forecast now.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
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...
Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...
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...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
