USD/TRY refreshes record high around 8.7000 as Turkish PM Erdogan pushes for rate cut

• USD/TRY extends Tuesday’s recovery moves, rallies 1,400 bps on PM Erdogan’s comments.
• Turkey’s PM Erdogan pushes for interest rate cuts during talks with central bank governor.
• US dollar recovers early Tuesday losses amid mixed clues, data.
• Turkish Exports for April, chatters over inflation and central bank action in focus.

USD/TRY jumps to fresh record top of 8.6900 within a few minutes of Turkish Prime Minister Recep Tayyip Erdogan’s speech during early Wednesday morning in Asia, late Tuesday for the rest.

In his latest moves, Turkey’s PM Erdogan talked to central governor and said that they must lower interest rates. His push has never been taken lightly as the history suggests firing of key diplomats and central bankers for not following his advice.

Markets understand the same and propel USD/TRY by a whopping 1,400 basis points (bps), still rallying, amid hopes of further easing by the Turkish central bank (CBRT).

Technical analysis

Unless declining below an ascending support line from mid-April around 8.4330, USD/TRY is ready to cross the yearly top, also the record high of 8.6165.