Watch out folks. Things are getting interesting.
Yesterday evening, the Turkish Lira SOARED after a massive rate hike by Turkey’s central bank.
The move helped created a bout of risk on sentiment across the market.
But look what’s happening now. The Turkish Lira — inspire of the huge rate hike — is rapidly melting against, giving up all those gains.
Here’s a 12 hour chart of the US dollar against the Turkish Lira. As you can see, the dollar tanked right away yesterday evening against the Lira. But now it’s climbing back as traders fade the Lira strength.
Keep an eye on this.
Meanwhile, the original strengthening of the Turkish Lira yesterday evening prompted a huge bout of global risk taking, as investors took the move as a sign of a major emerging market doing what needed to be done to end its currency problems.
But as the Lira is weakening again, the air is coming out of global stock markets a bit now too and the gains are significantly less subdued.
Remember, there is a Fed decision this afternoon. Today will be interesting.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.