EUR/TRY skyrocketed today after Turkish President Recep Tayyip Erdogan defended the massive and continuous interest rate cuts amid double-digit inflation. He said this is part of an “economic war of independence,” rejecting calls from investors and analysts to adopt a different strategy. Turkey's short-term external debt stock rose to $124.4 billion, an increase of +8.8% since the end of 2020. The rise in USD/TRY and EUR/TRY rates will exacerbate Turkey's debt problems over the coming months. According to data released by the CBRT, nearly 43% of the country’s debt was denominated in US Dollars, and just over 25% was denominated in Euros. Inflation is near 20% in Turkey, and the Turkish central bank has cut interest rates by 400bps since September, with the latest one being 100bps, delivered last week. This, combined with investors' fear over the lack of independence of Turkey’s central bank, has resulted in a 40% drop in the lira this year and 20% since the start of last week alone.
From a technical trading perspective and looking at our oscillator indicators, we notice that MACD is above zero, and the trigger line and RSI is strongly in the overbought zone. The price yesterday stopped at 2.00 Fibo level, and it would be interesting how it will react in the following days. According to the experts, the rate would continue conquering fresh highs, and the price could reach the next Fibo level 2.272 at a price around 15.50. But if it starts correction from this key point, it is possible to drop down to 1.618 Fibo level at price levels around 13.50, and if the price breakthrough the following story, it is possible to see the rate dropping all the way back around 11.50 levels.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands
From a technical trading perspective and looking at our oscillator indicators, we notice that MACD is above zero, and the trigger line and RSI is strongly in the overbought zone. The price yesterday stopped at 2.00 Fibo level, and it would be interesting how it will react in the following days. According to the experts, the rate would continue conquering fresh highs, and the price could reach the next Fibo level 2.272 at a price around 15.50. But if it starts correction from this key point, it is possible to drop down to 1.618 Fibo level at price levels around 13.50, and if the price breakthrough the following story, it is possible to see the rate dropping all the way back around 11.50 levels.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands