New CBRT Governor Attempts to Stabilize the Turkish lira

A change in leadership at the Central Bank of the Republic of Turkey (CBRT) slammed the Turkish lira (USD/TRY). A little over a week later, the new governor, Şahap Kavcıoğlu, granted an interview with Bloomberg to discuss recent events and monetary policy. The CBRT published a transcript of the brief interview. Thus, I assume the … Read more

Erdogan Slams the Turkish Lira With Surprise Change at the Central Bank

Financial markets hate surprises. Turkey’s President Tayyip Erdogan slammed currency markets to start the week. Two Days after the Central Bank of the Republic of Turkey (CBRT) hiked interest rates again (this time from 17 to 19%), Erdogan replaced the governor. The sacking occurred on Saturday, but the market clearly needed a lot more time … Read more

Forex Critical: The Turkish lira Fever Is Finally Breaking

Three months ago, I worried that the Central Bank of the Republic of Turkey (CBRT) was moving too late to hike interest rates. The Turkish lira (USD/TRY) is now finally working its way lower from those levels as the Turkish lira fever breaks. The path to today’s near 4-month low was fraught with wild volatility, … Read more

Overbought Trading Resumes With Fresh Momentum for the Reopen Trade – Above the 40 (November 13, 2020)

Stock Market Statistics AT40 = 74.4% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #1 overbought, 3 of last 4 days ooverbought) AT200 = 68.1%% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 23.1 Short-term Trading Call: neutral … Read more

Turkish Central Bank Hiked Policy Rate, But Too Late for the Turkish Lira?

The monthly chart of the U.S. dollar versus Turkish lira (USD/TRY) shows a near relentless and massive devaluation.

The Turkish lira suffered another run of sustained weakness this month. Weakness in the Turkish lira drove USD/TRY to new all-time highs. On Thursday, the Central Bank of the Republic of Turkey (CBRT) tried yet again to stop the bleeding. The Turkish Central Bank hiked its policy rate an entire 200 basis points from 8.25% … Read more

Emerging Currencies: Turkish Lira, South African Rand, Mexican Peso

When a financial market gets expensive, traders and investors start broadening their search for low-price opportunities. As an overbought U.S. stock market hits the late stages of an impressive rebound from March’s crash, its stock market looks expensive. Meanwhile, “emerging market” currencies like the Turkish lira, South African rand, and the Mexican have barely started … Read more

Forex Critical: Another Key Test for the Turkish Lira

The U.S. dollar versus the Turkish lira (USD/TRY) is testing 200DMA support after drifting through 50DMA support.

In late August, I wrote about a bad turn for the Turkish lira. Over two months later, the lira is around the same price levels in USD/TRY and EUR/TRY – two key pairs for the lira – but the path to this point has featured plenty of volatility. From a technical perspective, USD/TRY is testing … Read more

Forex Critical: A Bad Turn for the Turkish Lira

The U.S. Dollar vs the Turkish lira (USD/TRY) confirmed its 50DMA breakout with a second higher close.

The honeymoon seems already over for the new governor of the Central Bank of the Republic of Turkey (CBRT). After the promotion of Murat Uysal to governor of the CBRT, I concluded the Turkish lira would weaken. That weakness lasted all of one day, and the lira proceeded to bounce around in a range. Next … Read more

Turkish Lira Survives A Rate Cut And Comes Out With Stronger Prospects

The U.S. dollar versus the Turkish lira (USD/TRY) is rapidly heading downward for a test of 200DMA support.

Perhaps President Recep Tayyip Erdogan was right all along? It seems rate cuts are exactly what Turkey needs. As global central banks pedal backward on monetary policy, the Central Bank of the Republic of Turkey (CBRT) stands out with its extremely high rates. The CBRT got here as part of a fight against persistent and … Read more

Leadership Change at Turkey’s Central Bank Means Fresh Lira Weakness

The week of trading in foreign exchange began with the shock announcement of a leadership change at the Central Bank of the Republic of Turkey (CBRT). Murat Uysal, the Deputy Governor since June 9, 2016, was promoted to Governor. Uysal replaced Murat Cetinkaya who had been Governor since April, 2016. Cetinkaya actively resisted calls from … Read more