The Canadian Dollar is trading at 5.52 against the Turkish Lira this morning, down -1.38% with a YTD change of -5.42. The pair’s open rate sat at 5.6009, slightly lower than the previous close at 5.6013. CAD/TRY will have a daily range between 5.59 and 5.63, their 52-week range is forecasted to move between 4.41 and 6.57.
CAD/TRY has been climbing the trading ladder over 2020, reaching the highest exchange rate seen in five years in November at the 6.40 level. As 2021 begins, the currency pair has lost some traction but still sits above the 5.50 range. The last time CAD/TRY saw comparative growth was in August 2018 when the rate surged to the 5.10 level but the growth didn’t last long as the pair dipped below the 4.00 level in November 2018.
Over the course of 2019 and 2020, CAD/TRY has steadily risen from the 4.00 level to the higher end of the 5.00 level which bearish traders have benefited from as there has been a minimal long-term risk.
Canada’s inflation rate as of December sat at 0.7% while Turkey’s Lira as inflated 14.97% since January. CAD/TRY is expected to continue rising as vaccinations, oil, and employment rates propel the loonie and overall success of the Canadian economy.
Turkey experienced a large surge of COVID-19 cases at the end of last year; in November the country was reporting around 2,000 new daily cases then jumped to 33,000 new cases daily by the beginning of December. The country has succeeded in curbing the spread of the virus to around 5,000 cases per day but February numbers have been rising to 7,000- 8,000 per day which is impacting the overall success of TRY.
Canada’s COVID-19 numbers have been decreasing since January; at the beginning of the year there were 8,000 daily cases reported but as February numbers come in the country is seeing 3,000-4,000 new cases per day. This decline has benefited CAD across the market, and traders of CAD/TRY anticipate more growth in the coming weeks as lockdown measures in Canada are lifted.
By Surina Nath