The TRY lost a staggering 8.9% vs. the USD year-to-date to hit an all-time low amid fears Turkey's president Erdogan might succeed in abolishing democracy in the troubled country. The currency even surpassed the Mexican peso as the worst-performing EM currency relative to the USD.
Things aren't looking much better in EURTRY with the pair hitting 4.1 during early European trading. Given that the carry is very tempting (and with the prospect of the Turkish central bank potentially having to raise interest rates later in January), I'm pondering when to go short EURTRY. However, with negative TRY momentum still going strong I'll refrain from putting on a trade at the moment. Falling knives are falling particularly fast in the case of troubled EM currencies, and I'm not going to catch this one!