Weekly Report - 13/08/2018
The Turkish crisis with the US has been escalated after President Trump doubled the tariffs on Turkish steel and aluminium, sending the Lira to new record lows. To ease the Lira sell-off, the Turkish minister of finance stated that he has planned to take actions to restore confidence in Turkey’s markets.
Last week the Lira tumbled sharply on concerns that the US and Turkey crisis may escalate and worsen the already unstable Turkish economy. This scenario can prove contagious to emerging market economics and to the European Union, creating a chain reaction effect. In fact, the euro opened this week with a new one- year low against the greenback.
This week we’re expecting to see Turkey’s finance minister’s measures to ease the market’s concerns. "From Monday morning onwards our institutions will take the necessary steps and will share the announcements with the market," Minister Berat Albayrak said. In other news, the British pound could be further affected by the UK employment report due to be released on Tuesday. Last week’s GDP data did little to lift the GBPUSD which is under pressure due to Brexit concerns.
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