The lira stays in focus ahead of European trading

  • To continue to implement liberal exchange rate regime

These are all semantics as there is only one policy that matters in Turkey and that is appeasing Erdogan; as now former central bank governor Agbal learned the hard way.


The massive gap lower (15%) in the lira amid thinner liquidity conditions earlier in the day sparked some risk aversion in the market so we'll see how Europe responds to this and that will set the tone a little for the session ahead.

The dollar gained early but is seeing that advance trimmed as it holds near the lows for the day (still higher overall) ahead of European morning trade.

US futures are also looking calmer as Treasury yields retreat from the highs after the Fed's SLR decision at the end of last week, so that is helping with risk sentiment too.