The recovery momentum of Turkish lira investors

The recent rate cut from the Turkish central bank has stopped the recovery momentum of Turkish lira investors. As of writing, it’s seen that the pair is gradually gaining once again and this time, it’s believed that bulls will bring it back to its resistance. However, it’s still uncertain whether bulls will have enough strength to break the pair’s resistance as the Turkish economy gradually reopens. Meanwhile, late last week it was reported that the Turkish central bank eases its official interest rates, or otherwise known there as a one-week repo rate from 8.75% to just 8.25% as expected prior. Bullish investors of the pair immediately saw an opening to gain again following the central bank announcement. However, as the move was still in line with expectations, it didn’t cost major losses for the Turkish lira immediately. Economists are still warning that the consecutive rate cuts are putting intense pressure on the Turkish lira and the country’s economy.