The Turkish lira provided one of the more notable moves of the day, surging 0.6% against the dollar after reports that they expect President Trump to protect them from sanctions imposed by U.S. Congress over Ankara’s planned purchase of a Russian missile defense system. US officials have been vocal about using CAATSA sanctions if Turkey finalized a deal with Russia.
Price action on the USD/TRY daily chart shows price has tentatively found resistance from the 5.8000 handle. If today’s pullback continues, key support may come from the 200-day SMA, which currently trades around the 5.5356 level. Major support lies at the 5.4400 level.