The Turkish market is normalising after a massive sell-off on Wednesday – ING

In the CEEMEA FX space, developments in Turkey remain in close focus, ING’s FX analysts Francesco Pesole notes.

TRY erased roughly two-thirds of Wednesday's losses

"The Turkish market is normalising after a massive sell-off yesterday morning triggered by political headlines. TRY erased roughly two-thirds of yesterday's losses after the morning peak in USD/TRY."

"Finance Minister Simsek reiterated that the implementation of the government's programme and the healthy functioning of the market continue, which brought some relief to the market. We believe that the FX market will return to normal in the days ahead."

"The key will be to monitor the behaviour of local players and potential conversions into FX in the weeks ahead depending on how much yesterday's move shook confidence in TRY."