Trading EUR/TRY

• As a result, investors already familiar with stock markets may find it easier to make forex trading forecasts.
• Prevalence – The EUR is one of the most popular reserve currencies. Its size leads to an abundance of financial data being released. This means expectations around the EUR/TRY pairing are relatively easy to follow.
• Volume – The huge number of active traders means there are relatively high levels of volatility. All of which can lead to greater potential to make profits when investing in the pair.

Risks Of Trading EUR/TRY

Despite several benefits to trading the EUR/TRY pair, certain drawbacks also exist:

• Volatility – The high levels of volatility within the EUR/TRY pair can result in winning positions swiftly turning into losing ones. When converting 1 Euro into TRY, use an exchange rate graph to access historical data. You should also be aware of the maximum yearly or annual averages, as these can help you make forward predictions.
• Leverage – Margin trading may increase your potential profit. However, it can also amplify losses. So, if you do utilise leverage, making accurate daily and long-term forecasts is essential. Also ensure you use stop losses to minimise your risk exposure.
• Automated trading – Even with attractive bid-ask spreads and competitive forward rates, sophisticated trading algorithms exist which serve as stiff competition.

You might have the best currency calculators, converters and charts, but these bots can enter and exit trades using pre-determined criteria. It could be worth exploring automated forex trading to help give you an edge.

Understanding EUR/TRY

When trading 1 EUR into TRY, it’s important to understand the complex history and evolution of the pairing. This goes for any type of forex trade on the pair, including futures or options.

The development of the EUR/TRY currency pairing can be split into two periods. The first Turkish Lira ran between 1923 and 2005. After rampant inflation, the Turkish Central Bank reevaluated the Lira in 2005 and the last six zeros were removed from the value of the currency. This saw the beginning of the second Turkish Lira or Turkish New Lira. The Turkish New Lira is equivalent to 1-million of the old Turkish Lira.

Turkey is an emerging market and the TRY experiences high volatility as the country continues to struggle with inflation and financial stability. The TRY is used in both the Turkish Republic of Northern Cyprus and in Turkey.

The TRY has, at times, been ranked as one of the least valuable currencies in the world. But, in the last few years, the EUR/TRY has stabilised and even risen against the US Dollar.

The pairing between EUR and TRY reached an all-time high in November 2020, reaching 8.58. Today, forex traders worldwide continue to trade the EUR to TRY exchange rate.

Influences On Movement

Various economic and political factors can significantly influence the EUR/TRY pairing.

Economic Factors

The economies of the Eurozone are diverse, with Germany being the largest economy and a leading world exporter. Other economies, such as Ireland and Greece, are dealing with sovereign debt and strict government austerity measures. Staying informed about Germany’s key financial reports can help make informed trading decisions.

Meanwhile, Turkey’s economy is increasingly driven by industry and service sectors, including automotive, construction, and electronics. Announcements related to these outputs can influence the relative strength of the Lira against the Euro.

Political Factors

The political landscape is another critical factor that can affect the direction of any currency. Instability can significantly impact the exchange rate. Keeping an eye on the numerous countries within the Eurozone is a challenge. If other countries leave the European Union, such as the UK, the Euro’s strength is likely to decline. Therefore, staying updated with the latest political and economic news is crucial to predict the exchange rate for EUR/TRY.

You can plot events on a chart to help you make accurate forward predictions.

Making EUR To TRY Forecast

When trading the EUR vs TRY, having a good idea of future trends and predictions is key to making a real-time or long-term forecast. Being aware of the latest news and economic indicators that can affect the forecast for 2023 will help your technical analysis, as these can affect the pip value and buy and sell price.

To find out the EUR vs TRY monthly average and historical exchange rate history, use a top broker such as Oanda to access a 5 or 10 years chart. This will show you the correlation between the pairing over time as well as the value year-to-date.

Forums such as Yahoo Finance, TradingView, Bloomberg or Reuters, can also give you the live swap rates on the date you are investing.

Final Word On Trading EUR/TRY

The EUR/TRY currency pair brings both volume and volatility. But to trade the exchange rate effectively, you need to keep ahead of political and economic developments both in Turkey and across the Eurozone. The size of the Euro means there is a huge amount of economic data at your disposal, which will help you to make accurate forward rates and forecasts.

You’ll also need a top forex broker that offers excellent tools, such as live exchange rate charts, historical data and real-time FX quotes to enable you to make predictions about future trends. Oanda, Pepperstone and Plus500 are all popular options.

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