GBP/USD dropped under 1.28 early this morning as a report in the Financial Times on the economic health of Turkey rattled the markets. The article reported that the Eurozone’s chief financial watchdog had raised concerns over EZ lenders exposure to the country whose currency has devalued by around one third over the past year. USD/TRY has jumped from 5.0 through 6.0 since the beginning of August as concerns over Turkey’s deficit, inflation and its deteriorating relationship with America see investors flee. Turkish PM, Recep Tayyip Erdogan has been at loggerheads with America since seeing off a coup two years ago during which an American priest, Andrew Brunson was arrested for allegedly “supporting terrorism.” Cable is currently at 1.2760 its lowest level since its lowest level since June last year as investors flee the fragile pound and head for the safety of the dollar, yen, gold and US Treasury’s. Away from geopolitics we finally have some UK data to report with Q2 GDP hitting target at 0.4% and UK Manufacturing Production slightly beating estimates at 0.4% m/m for June/July.