British Exit Dominoes into USD and TRY
The GBP/USD pair slumped 0.22% at 1.2887 when a British source confirmed the United Kingdom’s exit from the European Union.
The UK Parliament initially voted in favor of the deal but slammed the timetable PM Boris Johnson presented for it. Johnson won 329 votes over 299 at the second reading.
Johnson said it was ultimately up to the EU to decide how long their supposed delay will be. Nevertheless, the United Kingdom will be the first country to leave the European project.
A Downing Street source said both the UK and the EU’s economies depend on the final Brexit deal. The British source said Johnson’s proposed snap election this December is possible.
The GBP/EUR pair slumped by 0.10% at 1.1591.
Investors anticipate how the Brexit decision will also affect the Turkish market. The GBP/TRY pair inched up 0.06% at 7.4076 on the latter, Wednesday.
Meanwhile, the TRY/USD pair lost 0.30% at 5.7488 when America and Turkey agreed to a permanent ceasefire on northern Syria. Reports immediately jumped into the Turkey-US conversation when the American President took credit for a diplomatic victory.
What the American President Should Take Credit For
Prior to the truce, President Trump went against foreign-policy aide advice and withdrew American forces from in northern Syria. The troops abandoned ally Kurdish troops.
Trump then persuaded a terrorist threat Syrian Democratic Forces to back up nine miles from the Turkish border.
The SDF bombed its own military posts when America promised Turkish troops wouldn’t invade until Trump tossed the promise aside. At the time, Russia and Turkey already agreed to join military patrols in the areas they controlled in Syria.
Foreign Affairs Ambassador James Jeffrey said the invasion was to “defeat” ISIS. This showed Trump wasn’t completely honest to US lawmakers about the crisis.
A source then laid out a history of his lies, including America’s intentions for Turkey back in Obama’s reign. This revealed his ignorance to the situation and lack of remorse for its violent consequences.