With stocks tumbling into the Friday close following the collapse of the Turkish lira, and with Trump a stickler for no red days especially when he is on vacation, traders were wondering where today’s stick save would come from. We got the answer moments ago when Trump’s attorney – or rather one of many – Jay Sekulow, said in a radio appearance on the Sean Hannity radio show, that the White House is working hard on the case of a U.S. pastor Andrew Brunson – who is held by Erdogan under house arrest, and was the catalyst for today’s latest Trump sanctions – and “says they’re close to getting a resolution.”
Sekulow, guest hosting with Rudy Giuliani in place of Sean Hannity on his national radio show, provided no details including how he’d be in a position to know, and no indication that this is not just a political talking point which is completely devoid of any of today’s context, which saw not only Trump double down on Turkish sanctions, but also ended with Turkey vowing to retaliate to US sanctions as relations between the US and Turkey collapse.
In kneejerk reaction, the USD/TRY dropped some 20 large figures, pushing US futures higher in the process.
Then again, with the Pastor at best a sideshow to the problems facing Turkey, of which first and foremost is Erdogan’s unwillingness to raise rates, call the IMF for help, or enact capital controls, we are confident it’s only a matter of time before the selling resumes.
