The Turkish Lira continues to drop as President Erdogan keeps up pressure for a recount of local elections in the country’s largest city, Istanbul, claiming that the margin was too small for the opposition to claim victory.
This comes ahead of the 3% drop last week, as the US halted delivery of equipment related to a Turkish order of F-35 fighter planes, warning that Ankara’s insistence on purchasing Russian defense systems could trigger American sanctions.
The USDTRY climbed above the 5.60 level, closing above it on Friday, and currently trading above it for the second consecutive day, the first time this has taken place in the past 3 months. If the day ends above the 5.60 level then it could be the omen of a stronger upwards movement in the near future.
The 5.60 level currently acts like a Support, with immediate Resistance at 5.75, having bounced off the level twice in the past couple of weeks. After that it’s JP Morgan’s forecast of 5.90, coinciding with the 38.2% Fib. level of 5.88.
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Dr Nektarios Michail
Market Analyst
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