USD/TRY retreats from highs, back near 3.5400

The Turkish Lira is trading on a negative fashion at the start of the week, with USD/TRY testing tops around 3.55 albeit deflating a tad afterwards.

USD/TRY higher post-CPI

TRY stays offered on Monday, dropping to 2-week lows vs. the buck, after Turkish inflation figures came in below expectations for the month of June. In fact, consumer prices rose at an annualized 10.90%  and contracted 0.27% on a monthly basis.

Further data saw June’s manufacturing PMI up to 54.7 from May’s 53.5 and producer prices rising 14.87% over the last twelve months and 0.07% MoM.

In the meantime, spot seems to have found some decent support around the 200-day sma near 3.5100 while the 55-day sma above 3.5500 appears to cap any bullish attempt for the time being.

USD/TRY key levels

At the moment the pair is up 0.61% at 3.5421 and a breakout of 3.5533 (55-day sma) would aim for 3.5587 (high Jun.7) and finally 3.6040 (100-day sma). On the other hand, the next support lines up at 3.5112 (200-day sma) followed by 3.4888 (low Jun.14) and then 3.4725 (2017 low Jun.14).