Turkish Lira to be hit by biggest terror attack this weekend

Turkey's lira is set to undergo major volatility following the biggest terror attack in Turkish history over the weekend, two bomb blasts in the capital Ankara at a peace rally left at least 95 dead and 246 injured. 

With militant PKK signalling a ceasefire ahead of the forthcoming 1 November election, and the rally itself was a 'peace rally' pushing for truce between official security forces and PKK, the attack which jeopardises such truce throws open the Pandora's Box. 

Kurdish politicians point their fingers at the government for framing Kurdish militants. The government, in turn, suspects either PKK itself or IS terrorists. It had been anticipated that the security situation within Turkey has become precarious since the launch of Syrian operations by NATO, this comes as brutal confirmation. 

"The attack has the potential to significantly impact the outcome of the elections as well depending on what the investigation throws up. At this time, there is not much more concrete one can say, but the risk situation will remain elevated in Turkey and market risk premium high", says Commerzbank.