Turkish President Erdogan: There's no turning back from the new economic programme

Joel Frank Independent Analyst

Turkish President Recep Erdogan said that there is no turning back from the new economy programme on Friday, according to Bloomberg. Interest rates will decline, he continued, and the Turkish people will not be crushed under high interest rates.

Market Reaction

USD/TRY has spiked higher in response to the latest remarks from the Turkish President. The pair lept from around 12.40 to above 12.60 at one point, though has since moderated back to the 12.40s again.

Analysts were hoping that, following the lira's recent sharp depreciation in response to the CBRT's recent run of rate cuts, the Turkish President might reduce his pressure on the central bank to embark on further rate cuts. Needless to say, the President seems to be doubling down on what many view as a calamitous policy of pressuring/bullying to CBRT into cutting interest rates.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.