USDTRY Pushes New Record High but Uncertain on Follow ThroughWhile there was heavy interest in the meme-stocks this past session, the emerging market FX space generated remarkable volatility on its own.
Some of the most liquid BRICS member currencies were posting impressive rallies - like the Brazilian Real (USDBRL) and South African Rand (USDZAR). However not all EM was outpacing the Greenback. The Turkish Lira was one such currency under its own pressure.
After reports that the Turkish President spoke to the central bank governor about rates being too high Wednesday morning, USDTRY surged to a fresh record high, but the candle ultimately ends with a large upper wick. Have we already priced in the coming rate cuts? Maybe in the short-term before the central bank officially cuts in a few weeks, but I'm dubious of longer term.
Our article on Erdogan's remarks: www.dailyfx.com
