USD TRY

These are the most volatile FX pairs in 2023. Learn how to trade them and use volatility to your advantage.

After last weeks surprise rate cut by the CBRT, USD/TRY moved to its highest level since December 20th, 2021.

It is worth watching EM currencies closely here as there is a risk we could see further, sharp, selling, which, in turn, could provide a fresh source of threat to the global financial markets.

Lira slumps further as crude oil nears $122

The Turkish Lira hit fresh new lows overnight as President Erdogan fired his Finance Minister (for opposing rate cuts, along with everyone else).

Technically we suspect the FTSE has seen an important low around 7200 (but we cannot say the same for the flailing Lira). Up later is US GDP and revised consumer sentiment.

Turkey’s central bank announce their rate decision at 11:00 today. And, if prior meetings are anything to go by, we suspect it will be another lively one.

Could this move above 10 just be a “buy the rumor, sell the fact” heading into the central bank meeting?

The inflation print beat expectations of 20.4% YoY, possibly because of the 200bps rate cut on October 21st!

Leaving little room for misinterpretation on Friday, Fed Chair Jerome Powell clearly stated that tapering is imminent yet poured cold water on any rate hike occurring soon.

USD/TRY won currency of the day to hit new highs after ‘impartial’ President Erdogan’s hand-picked central bankers cut rates by 200 bps despite raging inflation.