Lira strengthens on expectations Trump will protect them from sanctions

The Turkish lira provided one of the more notable moves of the day, surging 0.6% against the dollar after reports that they expect President Trump to protect them from sanctions imposed by U.S. Congress over Ankara’s planned purchase of a Russian missile defense system.   US officials have been vocal about using CAATSA sanctions if Turkey finalized a deal with Russia.

Price action on the USD/TRY daily chart shows price has tentatively found resistance from the 5.8000 handle.  If today’s pullback continues, key support may come from the 200-day SMA, which currently trades around the 5.5356 level.  Major support lies at the 5.4400 level.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya