USD/TRY prints all-time highs near 3.4100

The downside pressure around the Turkish Lira has intensified today, sending USD/TRY to the boundries of the 3.4100 handle, fresh historical peaks.

USD/TRY stronger on USD bids

The pair’s upside has found extra legs following auspicious results from the US inflation figures on Thursday, while Yellen’s testimony before Congress opened further the possibility of a rate hike by the Federal Reserve at its meeting next month.

Against a backdrop of increasing demand for the buck, the US Dollar Index has managed to clinch highs in the mid-101.00 during overnight trading, levels last seen in March 2003.

In the meantime, expectations of a potential Fed move by year-end plus the effervescent political scenario in Turkey remain poised to drive the sentiment around spot in the near to medium term, while geopolitical headlines remain also a potential source of TRY weakness.

Nothing scheduled data wise in Turkey or the US economy today, while St. Louis Fed J.Bullard (voter, dovish), New York Fed W. Dudley (permanent voter, neutral), KC Fed E.George (voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) are all due to speak later today.

USD/TRY key levels

At the moment the pair is up 0.85% at 3.3977 facing the next resistance at 3.4085 (all time high Nov.18). On the flip side, a breach of 3.3093 (low Nov.17) would expose 3.2330 (low Nov.11) and finally 3.1872 (20-day sma).