USD/TRY drops to multi-week lows near 8.4800

• USD/TRY tumbles to the 8.4800 area, 5-week lows.
• The selloff in the dollar helps in the pair’s downside.
• Turkey’s Economic Confidence improves in July.

The Turkish Lira gathers further pace and forces USD/TRY to drop to new lows in the sub-8.5000 area on Thursday.

USD/TRY lower on USD-selling

USD/TRY adds to Wednesday’s small losses and breaks below the 8.5000 support to trade in levels last seen in mid-June.

The post-FOMC moderate pullback in the dollar collaborates with fresh inflows into the EMFX universe, where high yielders like the Turkish lira remain one of the investors’ preferred currencies in this kind of scenarios.

In the docket, Turkey’s Economic Confidence improved to 100.10 in July (from 97.80). In the US, advanced Q2 GDP came in short of expectations at 6.5% and Initial Claims rose by 400K from a week earlier, also missing estimates.

USD/TRY key levels

So far, the pair is losing 0.65% at 8.4960 and a drop below 8.4853 (monthly low Jul.29) would aim for 8.3442 (monthly low Jun.11) and finally 8.2803 (monthly low Jun.11). On the other hand, the next up barrier comes in at 8.5877 (50-day SMA) followed by 8.6256 (monthly high Jul.26) and then 8.7974 (all-time high Jun.25).