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About the EUR/TRY (EURO & Turkish lira)
The EUR/TRY pair is the abbreviated term used for the Euro & Turkish lira.This pair does not have a nickname. Before we get into the particulars, what exactly does the EUR/TRY rate mean? The exchange rate tells you how many Turkish lira (the quote currency) are required to purchase one euro(base currency). For example, if the pair is trading at 6.90, it means it takes 6.90 New Zealand dollars to buy 1Euro.
Breaking Down ‘EUR/TRY’
The euro (€; EUR) is the official currency of 19 of the 28 member states of the European Union. The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is divided into 100 cents.
TRY stands for Turkish currency, which is now in the second issue period. This currency currently uses in the Turkish Rebulic of Northern Cyprus as well as in Turkey. The Turkish new lira breaks into 100 new kurus coins, the lira officially has the symbol YTL. it was introduced in 2005 the Turkish new lira is equivalent to 1-million of the old Turkish lira
This is a very attractive pair because of its high volatility during pre-crisis conditions, due to a monetary policy purpose to maintain price stability in the eurozone volatility has declined. in the past, the Turkish lira has been pegged to currency as same as the British pound, the French and most recently U.S. dollar.
Correlation is merely a mutual relationship or connection between two or more things.
Positive correlation – The positive relationship merely is when pairs move in tandem with each other.
In the forex world, the USDTRY, GBPTRY, and NOKSEK are positively correlated
Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction. For example, NZDJPY, NZDUSD, and EURMXN
The euro is one of the most important alternatives to the U.S. dollar among fiat currencies (the EUR/USD currency exchange rate is one if the most often traded pairs in the world). This is why there is often a positive link between the euro and gold: both assets are negatively correlated with the greenback.
What Determines the EUR/TRY Exchange Rate?
Several factors can impact the EUR/TRY rate valuation, including:
ECB & CBRT Monetary Policies: The European Central Bank and the central bank of the Republic of turkey control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency.
Economic Events: The movement in the Europian and Turkish events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Europian and Turkish, causing fluctuations in the EUR/TRY exchange rate.
Major Economic Events
Gross Domestic Product – the gross domestic product is the central measure of economic growth in the region.
Employment Change – The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.
Consumer Price Index – Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central
Industrial Production – This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.
The EUR/TRY is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $1.62