USD/TRY sees slight gains near $13.50 as Turkish President Erdogan sacks chief statistician
- USD/TRY pares Friday’s losses in slow session, refreshes intraday high latest.
- Erdogan fires head of Turkish Statistical Institute as inflation picks up in December.
- Hawkish Fedspeak, geopolitical fears are also challenging bear pairs.
USD/TRY resumes offers to refresh the intraday high around $13.55, up 0.30% on the day in Monday’s Asian session.
In doing so, the Turkish Lira (TRY) pair is reacting to news over the weekend that national leader Recep Tayyip Erdogan fired another diplomat after witnessing disappointing inflation data.
This time it is the director of the Turkish Statistical Institute, which publishes official inflation data, Sait Erdal Dincer, who has been replaced by Erhan Cetinkaya, former vice-president of the Turkish banking regulatory agency . It should be noted that the country’s inflation data for December came in at 36.08% from 21.31% previously.
On the other hand, hawkish comments from US Federal Reserve (Fed) officials and the US Senate’s aggressiveness towards passing a law sanctioning Russia are also playing their part in propelling USD/TRY prices, by the the attractiveness of the US dollar as a safe haven.
Minneapolis Federal Reserve Chairman Neel Kashkari said Friday he expects the Fed to raise rates at the March meeting. However, the decision maker stressed the importance of incoming data while saying, “You have to see how the data plays out.” On the same line, Raphael Bostic, chairman of the Atlanta branch of the Fed, mentioned, according to the Financial Times (FT), “If the data indicates that things have evolved in such a way that a movement of 50 basis points is required or [would] be appropriate, so I’ll look into that. . . If moving to successive meetings makes sense, I’ll be comfortable with that.
While illustrating a risk-free mood, 10-year US Treasury yields add 1.5 basis points (bps) to 1.795%, while S&P 500 futures fall 0.30% intraday latest.
Looking ahead, a light timeline emphasizes risk catalysts as the main drivers.
USD/TRY is oscillating between the 50-DMA and a descending resistance line from December 21, 2021, around $13.35 and $13.75 respectively.