TRY: Inflation did not moderate convincingly – Commerzbank

💡 DMK Insight

Turkey’s CPI easing to 32.9% might seem like good news, but the month-on-month figures tell a different story. Traders should be cautious; while the annual rate shows a slight decline, the stubborn month-on-month inflation indicates persistent price pressures. This could lead to continued volatility in the Turkish lira (TRY) as the Central Bank may feel pressured to adjust interest rates further. If inflation remains sticky, expect market participants to react, potentially pushing the lira lower against major currencies. Watch for key levels around recent support and resistance zones; a break below these could trigger further selling. On the flip side, if the lira stabilizes, it might present a buying opportunity for those looking to capitalize on a rebound. Keep an eye on upcoming economic indicators and central bank statements that could shift sentiment quickly.