Negative fundamentals keep Turkish lira on course for further fall
The Turkish lira maintains overall weak tone and holding within multi-week consolidation, not far from new all-time low, posted in November last year.
Rising inflation and central bank’s inability to adopt conventional measures to tackle the problem, as governors of Turkey’s central bank who raised interest rates in order to fight high inflation have been quickly dismissed, signals the loss of CBRT’s independence that weighs heavily on lira and adds to negative fundamentals, while bearish technical studies also contribute to negative outlook for lira.
Lira’s 2021 low at 8.5015 is in focus, guarding record low at 8.5816, loss of which would expose projected targets at 8.9796 and 9.2258, ahead of psychological 10.00 barrier.
Res: 8.3000; 8.4340; 8.4443; 8.5015
Sup: 8.2158; 8.1836; 8.1385; 8.0900