Lira Slides As Trump Warns "Big Sanctions On Turkey Coming!"

Over the weekend, a flurry of reports about the devastation in northeastern Syria were published by American media outlets. Then, finally, on Sunday, news arrived that the Kurds had struck a deal with the government of Bashar al-Assad - just as several American lawmakers had anticipated - suggesting that the fighting in Syria's northeast is only just beginning.

But the lira tumbled Monday morning as President Trump, in a series of tweets, let it be known that Washington is preparing "Big Sanctions" on Turkey after Trump last week granted the Treasury Department emergency power to levy such sanctions when and if it saw fit.

Trump then asked whether "people really think we should go to war with NATO Member Turkey?" in a subtle swipe against those who have harshly criticized his decision to pull US troops - a group that includes Democrats and Republicans.

Given the barrage of negative press, it's hardly surprising that Trump has apparently decided to move forward with sanctions. President Erdogan will probably be disappointed, and they could cast a pall over his planned trip to Washington next month.

Meanwhile, the Turkish lira shed 1.7% on the news.