Free Trial

TRY Optimism Soars Ahead of Biden Erdogan Meeting, S-400 Disappointment Risks Elevated

TURKEY
  • TRY continuing to diverge from the broad EM weakening trend vs the USD on expectations for Erdogan and Biden to reach a deal on S-400s
  • A lot of differing opinions on the matter coming out today, but the red line will ultimately be whether the US grants Turkey access to its Patriot system or not
  • The NATO deal seems dicey, given that it would likely provoke tensions with Russia and also be a bit unconventional for NATO to be happy overseeing a Russian-made missile system
  • Nevertheless, the outcome remains to be seen on Monday and what could be a sharp unwind of positive TRY sentiment on any potentially disappointing outcome
  • Both sides have so far hinted at being open to a deal, but no concrete moves have been made on either side
  • and rhetoric from the US side has been more on the hawkish side leading up to today with many calling for Biden to take a more proactive role in managing aggression in the region than Trump
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.