CBRT: Main Trend of Inflation Declined in June

The Central Bank of the Republic of Turkey's (CBRT) statement regarding a decline in the underlying inflation trend could alleviate pressure on the Turkish lira by keeping rate cut expectations alive. However, USDTRY is trading at 46.82, with the RSI at 54.7 in neutral territory and the MACD remaining below the signal line. As technical indicators do not provide a clear directional signal, a sideways movement can be expected in the short term. While the market awaits details of inflation data and potential interest rate decisions, a search for balance at current levels may continue.

Although the news reflects a decline in the underlying inflation trend positively, the EURTRY pair technically lacks a clear short-term direction due to the RSI being neutral at 50 and the MACD remaining below its signal line in negative territory. The price is trapped between the 20-day and 50-day moving averages, increasing the likelihood of a sideways movement. The drop in inflation may somewhat boost confidence in the Turkish lira, but the current technical picture does not show sufficient momentum for an upward breakout. Therefore, the pair is expected to fluctuate within its current range in the near term.