Sumary of Big falls, thin trades: Trading Turkey’s lira:
- Article content LONDON — The Turkish lira suffered a historic 15% fall on Tuesday in a session marked by thin trading volumes and dwindling liquidity, and gauges are pointing to more rocky times ahead.
- SOARING VOL Implied volatility gauges for lira/dollar – indicating expected fluctuations ahead – on Tuesday raced to their highest level since Turkey’s 2018 currency crisis.
- The lira reversing some of its losses on Wednesday saw only a small pull back in implied volatility, showing that investors are betting on more swings ahead.
- WIDENING GAP Volatility in the lira is unlikely to end soon.