A ‘Stealth’ Rate Hike From Turkey And A ‘Pick Your Poison’ Quandary For Europe

Turkish stocks managed to rise in a shortened session ahead of the holiday, but the lira fell as markets continue to ponder the outlook for a currency that's beset by an exceptionally unfavorable fundamental backdrop and concerns about central bank independence. Back in May, in an effort to regain control of the currency after President Recep Tayyip Erdogan’s deadpan Bloomberg TV interview during which he explicitly stated that he would take a more active role in monetary policy following t