Jun 27 2019

Traders ‘cold-blooded’ on lira as Erdoğan talks up S-400 deal

Traders in the Turkish lira seem “cold-blooded” over the prospect of Turkey avoiding U.S. economic sanctions for its purchase of Russian S-400 missiles, FX Street reported.

Turkish President Recep Tayyip Erdoğan is talking up a meeting with U.S. President Donald Trump this week, saying he doesn’t expect him to approve the measures.

The dollar-lira exchange rate has been sitting at just below its 21-day moving average of 5.8122 per dollar as traders await concrete news from the talks, FX Street said.

Erdoğan said this week that he hopes Trump understands Turkey’s reasons for buying the weapons. The U.S. president is considering a visit to Turkey next month, Erdoğan said, when the NATO member is due to take delivery.

The lira was little changed at 5.77 per dollar in late morning trade in Istanbul on Thursday. Sanctions imposed by Trump for Turkey’s detention of a U.S. pastor last August sent the currency plummeting to a record low of 7.23 per dollar, sparking an economic recession.

A break of the 21-day moving average could see the lira trade at 5.9331, FX Street said. A downside break through the 100-day average of 5.7010 may see it strengthen to 5.6621, it said.

 

https://www.fxstreet.com/news/usd-try-remains-under-21-dma-despite-turkish-presidents-optimism-201906262308