Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Turkish lira: roller coaster continues

Turkish lira: roller coaster continues

Information is not investment advice

How much unexpected news the Turkish lira can handle? Just two months have passed after Turkish President Tayyip Erdogan fired the central bank’s governor and replaced him with Sahab Kavcioglu, who was expected to conduct a policy of low-interest rates. That is, the president created conditions for extremely high inflation and lower economic growth. However, the challenges for the Turkish lira were not over. On Monday, April 26, the Turkish lira plunged on the straightforward comments of US President Joe Biden. So, what exactly happened?

US policy has taken a new course  

On April 25, the US President commemorated the mass killing of Armenians in the Ottoman Empire and called it a “genocide”. This refers to the events that happened at the beginning of the XX century. Turkey has denied that its predecessors in the Ottoman Empire were connected with acts of brutality against the Armenian people.  The reaction from the Turkish side came right away. According to the Turkish foreign ministry, the USA has made a “grave mistake” that affects the mutual trust and friendship ties between the two countries. The news resulted in swings of the Turkish lira, as USD/TRY has spiked above the highs of March 22.

It’s worth mentioning that the Turkish assets are highly sensitive to the escalation of relations between the USA and Turkey given past US sanctions and economic threats.

What else is driving the TRY down?

The dovish policy by the Turkish central bank is another factor that affects the TRY negatively. According to analysts, the regulator will begin cutting rates in the middle of the year. They also suggest that the new governor may re-impose the expensive policy of selling foreign currency reserves to support the lira.

Technical picture

USD/TRY

The USD spiked against the Turkish lira at the early hours of the European trading session. Still, sellers could control the momentum and hold the pair below the ascending trendline. We may expect bulls to try regaining their strength and pushing the pair towards 8.5. After that, reaching 8.5500 will be highly likely. On the downside, the support levels lie at 8.25 and 8.14.

  USDTRYH4.png     

LOG IN                                                             

Similar

US Interest Rate Slowdown?

The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…

Popular

Gold isn't saving investors from inflation

Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later