- USD/TRY picks up bids to snap two-day downtrend around the yearly top.
- US dollar bears take a breather as chatters surrounding Sino-American tussles, recession weigh on sentiment.
- Turkish CPI, US NFP will be crucial data to watch for clear directions.
USD/TRY prints the first daily gains in three as buyers attack 18.00 threshold heading into Tuesday’s European session. In doing so, the Turkish lira (TRY) pair justifies the market’s rush toward the US dollar amid a risk-off mood.
That said, the chatters surrounding the US-China tussle over US House Secretary Nancy Pelosi’s visit to Taiwan and the likely hardships for Chinese chipmakers appear to weigh on the market sentiment. On the same line could be the dragon nation’s readiness for a military drill in Bohai, South China Sea. Furthermore, headlines suggesting Chinese policymakers’ lack of confidence in this year’s Gross Domestic Product (GDP) forecasts also contribute to the risk-off mood and drown the quote.