TRY slipped 0.4% after rating agency Fitch downgraded the country's debt rating to "B" from "B+" on Friday, citing rising inflation and economic concerns, per Reuters.
On the other hand, a record high print of the US one-year inflation expectations, as per the NY Fed’s survey of one-year-ahead consumer inflation expectations, join chatters surrounding economic slowdown to fuel the USD/TRY prices. That said, the NY Fed’s inflation precursor jumped to 6.8% in June, versus 6.6% prior.
That said, the pair traders should watch for risk catalysts for fresh impulse ahead of Wednesday’s US Consumer Price Index for June, expected 8.8% versus 8.6% prior.Despite the USD/TRY pair’s latest inaction around a two-week top, the quote’s daily closing above a downward sloping resistance line from June 09, now support around 17.33, keeps the bulls hopeful to refresh yearly low, around 17.50 at the latest.
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