EUR/USD consolidates Turkey fears-led slide to 1.1430, US CPI eyed

EUR  USD

Turkey says doubled tariffs on Turkish steel and aluminium announced by US President Donald Trump are against the rules of the World Trade Organisation (WTO).

The U.S.' additional tariffs on steel imports from Turkey will take effect on August 13, the White House and Department of Commerce announced Friday.

Speaking to a crowd of supporters in the Black Sea coastal city of Trabzon, Erdogan repeated his call to Turks - for the third day in a row - to sell euros and dollars to shore up lira.

"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly against our very strong Dollar!"

"Doubling the tariff on imports of steel from Turkey will further reduce these imports that the Department found threaten to impair national security as defined in Section 232", he added. "Exit of funds from the Turkish financial markets can be an opportunity for the Egyptian economy as a competitive market in the same region".

The currency's drop - 41 percent so far this year - is a gauge of fear over a country coming to terms with years of high debt, global concern over Erdogan's push to amass power, and a souring in relations with allies like the U.S.

U.S. State Department spokesperson Heather Nauert said Thursday that Washington "would define progress as Pastor Brunson being brought home".

The Turkish lira TRYTOM=D3 has always been falling on worries about Erdogan's influence over monetary policy and worsening relations with the United States.

In an article in the New York Times, Erdoğan said Trump's sanctions against Turkey over the Brunson's detention were "unacceptable, irrational and ultimately detrimental to our longstanding friendship".

In Rize, Erdogan said the United States would pay a price by challenging Turkey for the sake of "petty calculations", denouncing Washington for declaring "economic war on the entire world" and holding countries "for ransom through sanction threats".

Erdogan appeared unworried by the punitive measures imposed by the USA, saying Turkey could turn to other partners and again terming the crisis an "economic war". "This is called carrying out an operation against Turkey", he said.

The United States gave Turkey a deadline until last Wednesday, Turkish President Tayyip Erdogan said on Sunday, to release an American pastor being tried by a Turkish court. Turkish authorities said that Washington used 5,000 trucks and 2,000 cargo planes to deliver weapons to the P.Y.D./Y.P.G in recent years, which Ankara sees as the direct undermining of its government.

Writing on Twitter, Iran's Foreign Minister Mohammad Javad Zarif also accused Washington of an "addiction to sanctions and bullying".

The Turkish strongman also lashed out at interest rates, denounced them as a "tool of exploitation" which should be kept as low as possible.

The United States sanctioned Turkey for imprisoning an American priest on bogus charges.

The president also mentioned US support for the PKK's Syrian affiliate, the People's Protection Units (YPG) in northern Syria, as another source of frustration.

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