USD/TRY resumes the upside near 17.96 on Thursday, reversing two consecutive daily pullbacks. Bulls keep pushing harder but there seems to be a huge resistance in the 18.00 neighborhood so far.
While the selling bias around the Turkish lira remains well in place continuing the trend of the past couple of weeks, the contention area around the 18.00 mark has so far held on pretty well.
In the domestic calendar, the Current Account deficit shrank to $3.46B in June (from $6.47B).
In the meantime, investors have started to shift their focus to the upcoming monetary policy meeting by the Turkish central bank (CBRT) on August 18, where consensus remains so far biased towards another “on hold” stance despite inflation running at its fastest pace since 1998 – at nearly 80% YoY in July.