USD/TRY traces bearish options market signals ahead of CBRT Interest Rate Decision

USD/TRY remains pressured around 18.60, down for the third consecutive day, as traders prepare for the Interest Rate Decision from the Central Bank of the Republic of Turkiye (CBRT).

That said, the Turkish central bank is likely to keep diverging from its global counterparts, despite strong inflation, as market consensus suggests a third consecutive rate cut to 9.0%, from 10.5% current level.

In addition to the pre-CBRT consolidation, the bearish signals from the options market also weigh on the USD/TRY prices.

The one-month risk reversal (RR), a gauge of the difference between the call options and the put options, drop to -0.030 level at the latest. However, the weekly RR prints +0.050 figure to consolidate the biggest loss since late August marked in the last week.

On an immediate basis, Turkiye’s Capacity Utilization and Manufacturing Confidence for November could act as catalysts.