JamesThatcher
Well-known member
What does the data mean to the market?
The Central Bank of the Republic of Turkey's (CBRT) Monetary Policy Committee votes on setting the overnight interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the TRY (Turkish Lira), while a lower than expected rate is negative/bearish.
Historic deviations and their outcome
March 18 2021 +1.0 positive deviation from the forecast, which gave a nice move of 750 pips in the first minute, then great continuation afterwards, too!
Check out the price action here:
December 24 2020 +0.5 positive deviation from the forecast, which gave 475 pips in one minute.
Check out the price action here:
October 22 2020 -1.75 negative deviation from the forecast, which created a great move! With over 900 pips in the first minute.
Check out the price action here:
I will use forecasts of:
Benchmark Rate 19.00
Today's trade plan
All economists forecast today for the rate to stay at 19%
The last time there was an unexpected hike in rates, President Erdogan sacked the central bank governor. The new Governor Kavcioglu has said that he will ignore higher inflation. What he says and what he does are two separate things; however, recently, we had a strong inflation number. It's unlikely he would shock the markets and move the rates, but you never know, so I'll be ready just in case.
If we get a change of 1.0 in either direction, I'll take a trade.
Tradable pairs
EURTRY
USDTRY
Hope this helps but please do your own analysis!!
Good luck!!
James Thatcher
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
The Central Bank of the Republic of Turkey's (CBRT) Monetary Policy Committee votes on setting the overnight interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the TRY (Turkish Lira), while a lower than expected rate is negative/bearish.
Historic deviations and their outcome
March 18 2021 +1.0 positive deviation from the forecast, which gave a nice move of 750 pips in the first minute, then great continuation afterwards, too!
Check out the price action here:
TR One-Week Repo Rate 2021-03-18 11:00:00.0
TR One-Week Repo Rate 2021-03-18 11:00:00.0
calendarapi.galaxysoftwareinc.com
December 24 2020 +0.5 positive deviation from the forecast, which gave 475 pips in one minute.
Check out the price action here:
TR One-Week Repo Rate 2020-12-24 11:00:00.0
TR One-Week Repo Rate 2020-12-24 11:00:00.0
calendarapi.galaxysoftwareinc.com
October 22 2020 -1.75 negative deviation from the forecast, which created a great move! With over 900 pips in the first minute.
Check out the price action here:
TR One-Week Repo Rate 2020-10-22 11:00:00.0
TR One-Week Repo Rate 2020-10-22 11:00:00.0
calendarapi.galaxysoftwareinc.com
I will use forecasts of:
Benchmark Rate 19.00
Today's trade plan
All economists forecast today for the rate to stay at 19%
The last time there was an unexpected hike in rates, President Erdogan sacked the central bank governor. The new Governor Kavcioglu has said that he will ignore higher inflation. What he says and what he does are two separate things; however, recently, we had a strong inflation number. It's unlikely he would shock the markets and move the rates, but you never know, so I'll be ready just in case.
If we get a change of 1.0 in either direction, I'll take a trade.
Tradable pairs
EURTRY
USDTRY
Hope this helps but please do your own analysis!!
Good luck!!
James Thatcher
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.