USD/TRY flirting with 2017 lows around 3.5000

The Turkish Lira is gathering extra pace vs. the greenback on Monday, dragging USD/TRY to fresh daily lows around 3.5000.

USD/TRY offered post-CPI

Spot met further downside pressure at the beginning of the week after inflation figures in Turkey came in below expectations for the month of May. In fact, consumer prices tracked by the CPI rose at an annualized 11.72% during last month, a tad lower than April’s 11.87% gain. On a monthly basis, the CPI rose 0.45%, surpassing estimates.

Further data saw producer prices rising 0.52% inter-month and 15.26% over the last twelve months.

In the meantime, the pair is navigating the area of fresh yearly lows around the critical support at 3.50 the figure, levels last traded in late December 2016, and retreating for the second consecutive week.

Looking ahead, factory orders, the ISM non-manufacturing, non-farm productivity and unit labor costs are all due in the US docket.

USD/TRY key levels

At the moment the pair is losing 0.20% at 3.5040 facing the next support at 3.4990 (2017 low Jun.5) followed by 3.4553 (200-day sma) and then 3.3370 (low Dec.8 2016). On the upside, a breakout of 3.5626 (20-day sma) would aim for 3.5890 (high May 30) and finally 3.6064 (55-day sma).