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After seeing a modicum of relief.......>

TURKISH LIRA
TURKISH LIRA: After seeing a modicum of relief Friday as Turkish state banks
took advantage of low liquidity Asia-Pac markets to buy up the TRY in size, the
USD/TRY pair has drifted back higher Monday, with TRY underperforming broader
EMFX space (closely followed by ZAR). USD/TRY eyes Friday's highs first and
foremost at 6.2023 ahead of 6.2457, the recent cycle high. Some wires cite
Turkish corporates stepping in to buy USD early Monday as being responsible for
today's uptick in the spot rate.
-In response to the pickup in USD/TRY spot, implied vols have edged higher
again, erasing the entirety of Friday's downtick to recover to around 23 vol
points, with call vols doing most of the work. Risk reversals over the same time
horizon hit new multi-week highs early Monday, but are yet to test the 9.2125
mark printed in mid-April.
-Unsurprisingly, USD/TRY call options have been in demand from the off, with
markets eyeing strikes as high as 6.50, a level spot hasn't touched since
September. One of the larger trades crossing so far Monday includes what appears
to be a $250mln 6.00/6.50 call spread rolling off in early October.

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