USD/TRY recedes from all-time highs, back below 8.45

• USD/TRY did not reach an all-time high today… for now.
• Investors remain vigilant on the US elections results.
• Turkish central bank remains in the centre of the debate.

The lira manages to duck another all-time low vs. the greenback, and that’s news on Wednesday. In fact, USD/TRY trades on a positive note albeit below Tuesday’s peaks near 8.55.

USD/TRY focused on US elections, CBRT

USD/TRY resumes the upside following Tuesday’s small pullback despite hitting fresh all-time highs in levels just shy of the 8.55 yardstick.

In the meantime, the currency remains well under pressure on the back of rising inflation, the persistent drain of FX reserves and negative real interest rates. It is worth noting that Tuesday’s inflation figures saw the CPI rising nearly 12% on a year to October, well above the central bank’s 5% goal.

Back to the US elections, a Biden win could increase the likeliness of sanctions against Ankara following the purchase of the S-400 Russian defence system.

So far, the lira is the worst EM currency performer, shedding nearly 30% this year. The pair gained almost 10% since the CBRT disappointed market expectations at its late October meeting.

USD/TRY key levels

At the moment the pair is gaining 0.50% at 8.4329 and faces the next hurdle at 8.5434 (all-time high Nov.3). On the downside, a drop below 7.7787 (low Oct.22) would expose 7.6294 (monthly low Oct.1) and finally 7.5082 (low Sep.25).