Trump weighs fresh sanctions on Turkey over the country's purchase of Russia's S-400 missile defense system
The initial move sees the lira fall by 1.5% on the headline with USD/TRY rising just above 5.90 before retreating slightly now to just under the 100-hour MA (red line). If buyers hold a break above that, the near-term bias in the pair turns more bullish again.
The headline report comes from Bloomberg, citing people familiar with the matter. Adding that Trump is weighing up three sanctions packages to punish Turkey over the issue identified, with the most severe package under discussion by officials would "all but cripple the already troubled Turkish economy".
That's certainly a bit unsettling for investors but it continues to highlight risks surrounding the lira over the past few months.
