The USD / TRY price fell to its lowest level since Jan. 4 as investors reacted to the latest US inflation data. The Turkish Lira is trading at 13.2 against the US Dollar. On the other hand, GBP / TRY and EUR / TRY are trading at 18.4 and 15.12 respectively.
USD / TRY moved lower as the US dollar broadly fell after the latest US consumer inflation data. Figures showed that the headline CPI jumped to 7%, the highest level since 1982. The core CPI, which excludes volatile food and energy prices, rose 4.8% at 5.5%. The US dollar fell after this report as many analysts expect inflation to have peaked.
The Turkish lira will then react to the country’s latest retail sales figures. The data will come in the morning session. Analysts are eager to see if sales jumped in December after rising 15.25 the month before. In addition, headline consumer inflation rose by around 30% in December.
A report released by the FT showed that the sale of the Turkish lira caused more people in Turkey to avoid the pound. Instead, they now use foreign currencies like the US dollar and stablecoins like Tether and USD Coin.
USD / TRY technical analysis
The four-hour chart shows that USDTRY fell sharply on Wednesday after the latest US inflation data. The pair moved lower after finding strong resistance at the 15.83 level where it struggled to break above several times this month. The pair also managed to move slightly below the 25 and 50 day moving averages.
Therefore, the pair will likely continue the downtrend as the bears target the next key support level at 14.00. A move above resistance at 15.83 will invalidate this view.