Turkish lira falls to one week low on fears on higher than expected inflation

The USDTRY ticked higher and hit session high at 4.9217 on Tuesday (one week high) but failed to hold gains.
Fresh weakness of lira was sparked by CBRT’s inflation forecast for the rest of the year and for 2019 which was revised higher, as focus turns towards Friday’s CPI release.
Markets are widely concerned that inflation has risen in July much above forecasted 0.9%, following 2.6% rise in June, which would have stronger negative impact on Turkish currency.
Higher than expected inflation would lead towards further lira’s depreciation and acceleration towards pair’s 12 July record high at 4.9736, violation of which would unmask psychological 5.00 barrier

Res: 4.9384; 4.9736; 5.0000; 5.0406
Sup: 4.8726; 4.8364; 4.8241; 4.8000