USD/TRY closed Wednesday at 46.12928, up 0.10% or 45 pips from Monday's open at 46.08405. The pair has traded between 46.04673 and 46.12933 so far this week, with Wednesday marking the highest close.
Dollar strength across emerging market currencies pushed USD/TRY higher through Tuesday and Wednesday. The PBOC's weaker yuan fix on Wednesday morning reinforced broad EM weakness, keeping the lira under pressure as the pair approached the 46.13 handle.
Thursday brings Turkish industrial production data, typically released at 07:00 GMT. If production disappoints relative to consensus, USD/TRY could test 46.15 and potentially 46.20. Friday closes the week with Turkish retail sales figures. A stronger-than-expected print could see the pair pull back toward 46.05, while weakness would likely cement the break above 46.13.
The 46.13 area represents both this week's high and a psychological resistance point. If USD/TRY holds above 46.13 through Thursday's session, 46.20 becomes the next obvious level. A rejection here could see the pair revisit 46.05, near this week's low at 46.04673.
Byline: LHFX Research
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