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Trading EUR/TRY

Written By

James Barra

Written By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.

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Edited By

Jemma Grist

Edited By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

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Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

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Updated

Sep 13, 2024

The historic volatility of the EUR/TRY currency-cross has attracted forex traders. Today, that volatility has somewhat stabilised due to monetary policy in the Eurozone, however, there remain interesting trading opportunities. The complex history of the TRY means the currency can swing as the country continues to battle financial stability.

This page will cover everything you need to know to start day trading the EUR/TRY, from its history, benefits and drawbacks, to influences on the FX exchange rate. We will also look at the top places to access the historical data needed to make effective real-time or long-term forecasts.

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EUR/TRY Meaning

The EUR/TRY currency pair is the value of the Euro against the Turkish New Lira. EUR is the base currency and TRY is the counter currency. TRY is sometimes referred to in forex as YTL. This is because the Turkish New Lira breaks into 100 new kurus coins.

Benefits Of Trading EUR/TRY

The EUR/TRY spot rate is a popular currency pairing for traders looking to trade TRY:

• Stock indicator – The EUR is considered a leading indicator for stocks. 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 reached an all-time high in November 2020 of 8.58.

Today, the EUR to TRY exchange rate is traded by forex traders around the world.

Influences On Movement

The political and economic landscape can have a huge influence on the EUR/TRY pairing.

Economic Factors

Economies in the Eurozone vary widely. Germany is the largest economy and a leading world exporter. Other economies (such as Ireland and Greece) endure sovereign debt and strict government austerity measures. Staying ahead of Germany’s key financial reports will help inform EUR/TRY trading decisions.

On the other hand, Turkey’s economy is increasingly driven by industry and service sectors. This includes automotive, construction and electronics. Again, announcements on any of these outputs will influence the relative strength of the Lira against the Euro.

Political Factors

Another crucial factor is the political landscape. Instability can influence the direction of any currency. The challenge comes in keeping an eye on the numerous countries within the Eurozone. Should other countries leave the European Union like the UK, for example, the strength of the Euro is likely to decline. So, keep abreast of the latest political and economic news as this can affect 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 2025 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.

FAQ

Why has EUR/TRY weakened?

Despite efforts from the Turkish Central Bank to prevent the currency from weakening, the TRY hit record lows against the Euro and US Dollar in 2020. The fall was a result of the effects of the global Covid-19 pandemic and poor economic policy converge.

Will EUR/TRY strengthen this year?

Most banks forecast the Euro will gradually strengthen in the future. Use a leading FX broker to access live swap rates and graphs when making a comparison between EUR and TRY.

What does it mean to trade EUR into 1 TRY?

When you trade 1 EUR into TRY you are trading the Euro against the Turkish New Lira. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.

What are the best times to trade EUR/TRY?

The forex market runs in line with the normal business hours of four different parts of the world and their respective time zones. The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.

Is the Mastercard exchange rate good for EUR/TRY?

The Mastercard currency converter tool calculates foreign exchange rates for all the major currencies worldwide to enable cross-border purchase. You can use the Mastercard exchange rate as an indicator for the value of EUR into TRY ahead of your trade.