Market Snapshot – Lira Falls on Rising Tension

Slow Day in the Markets

It has been a slow day in the markets so far, which is understandable as it is a holiday in Japan and also in the US and Canada as well. This has led to some liquidity and hence some low volatility in the markets as well. The European stock markets have been mixed with the DAX continuing to consolidate and range news its highs but still finding it unable to break through the 13000 region. We had mentioned that it would only be a matter of time before the index breaks through but it has been unable to do so since the middle of last week and this could cause some jitters among the traders. We have to wait and see how traders are going to react to this inability to break through.

Lira Crashes As Tensions Escalate

The star of the day in the currency market turned out to be USDTRY pair, very surprisingly. The pair is known to be pretty volatile even during the best of times but with a lot of risk and uncertainty dominating the geopolitical scene in Turkey, the volatility has only picked up further. The lira fell due to rising tension between the US and Turkey. This has resulted in both the countries suspending the visa service to the other country and this has led to a lot of tension between them. The fall in the prices of Lira also happened in the morning when the liquidity was low and since then, there has been a bit of a recovery in the prices.