Turkish Lira volatility gauges calm to lowest since August

Turkish Lira volatility gauges calm to lowest since August

LONDON - Reuters
Turkish Lira volatility gauges calm to lowest since August

The Turkish Lira’s “implied” volatility hit its lowest since early August and broke through a key technical level on Nov. 14, as falling oil prices added to a general easing of worries around the currency in the last few months.

Three-month implied volatility dropped to as low as 18.90, which also took in under the 200-day moving average on the option which was at 19 on Nov. 14.

Money markets, though still hard to read accurately, are also starting to price a modest fall in interest rates going forward, having been pricing in rate rises for most of the last year.

Lira further recovers amid signals of ease in trade tensions
Lira further recovers amid signals of ease in trade tensions

Contraction in current account deficit and production
Contraction in current account deficit and production

Turkish Lira, value, increase, Interest Rates