Turkish Forces Stand Down with the US
The Turkish Lira went up 0.84% at 0.1742 after Turkey and the US agreed to a permanent ceasefire in northeast Syria.
US President Donald Trump said the White House would lift the sanctions until something happens with which they would not be happy. He claimed the outcome was from the United States, “and nobody else. No other nation, very simple.”
Contrarily, Russia joined Turkish police forces to secure a lasting ceasefire in northern Syria. The USD/RUB pair fell 0.09% at 63.8764.
Emerging reports claim the US economy is in peril as investors boycott large American companies for the conflict. The USD/CNY pair dropped to 7.0586 this morning.
Back in Turkey, their central bank will decide on possible interest cuts tomorrow. The interest will possibly ease from 16.5% to 15.5%. If it does not go well, the results can drag TRY/GBP exchange down with it.
Predictions expect the British pound to boost if the EU would grant a long extension.
GBP went up against TRY by 0.22% at 7.4164, while the USD/GBP pair slipped 0.03% to 0.7737.
British Deal “Flextends” to January
Speaking of the influence the British pound has, it looks like the Brexit deal will have to be extended until January. Brexit coordinator Guy Verhofstadt said the European Parliament would need time to scrutinize the deal before they can approve it.
He announced the flexible January 31, 2020 deadline as “flextension.” It meant the UK could leave the EU at any time on or before January if they get the deal done.
UK Prime Minister Boris Johnson demanded a snap election if the EU gives a three-month delay. Richard Burgon said they could vote as soon as no-deal is off the table.
The European Labour Authority initially backed the deal but rejected Johnson’s timetable for the shift.
Consequently, Turkish Lira will have to rely heavily on the Sterling as the UKs waits for the EU’s final decision.
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