S&P 500 futures up 0.3%
The collapse in the Turkish lira has been met with a bit of a pause in European morning trade so far, with USD/TRY ranging between 7.80 and 8.00 for the most part after having opened with a 15% gap higher at 8.35 earlier in the day.
The relative "calm" is helping to see risk assets recover on the session now ahead of North American trading with the dollar also falling to the lows of the day.
US futures are climbing as the greenback slips across the board, with AUD/USD turning flat at 0.7742 while EUR/USD is up to a session high of 1.1928.
The lira will still be a key one to watch with USD/TRY options volatility (↓) having spiked, favouring potentially more wild moves in the short-term - especially if the new Turkish central bank regime opts to reverse the 200 bps rate hike last week.
That could prompt further weakness in the lira moving forward, especially if there is a further exodus of foreign funds in Turkish assets, and may lead to fears about emerging market contagion as we saw earlier in the day.
Just something to be mindful about when navigating the course of this week.