USD/TRY inched to a new cycle high.....>

TURKISH LIRA: USD/TRY inched to a new cycle high of 5.9207 overnight, the best

level since mid-October when the pair printed 5.9384, which becomes the first

target for bulls. Today marks the fourth consecutive session of higher highs and

higher lows, with markets remaining focused on Erdogan's recent threat to

shutter two NATO bases (Incirlik and Kurecik) if the US proceed with sanctions

on Turkey following their purchase of Russian S-400 missile systems.

-The vote in the US on sanctions was pushed back to a later date last week,

leaving the decision up to Senate Majority Leader McConnell, who has previously

warned that harsh sanctions on Turkey could foster stronger, and not weaker,

Turkish-Russian relations.

-A vote on the bill could be now be delayed until 2020, increasing materially

the headline risk for TRY this week.