A sweet spot for Turkey - TD Securities

"US President Donald Trump has today ordered full US troop withdrawal from Syria citing a defeat of ISIS. This puts Turkey in a sweet spot for now," note TD Securities analysts.

Key quotes

"First of all, it deescalates diplomatic tensions with between Turkey and the US. Secondly, it may give Turkey the green light to intervene more deeply in Syria, which, ahead of the March municipal elections, will improve the fading support of the nationalists."

"Finally, it may hint at the possibility of unlocking military hardware deals between Turkey and the US, to some extent advantageous to both, that have been put on freeze by the rising diplomatic tensions between the two allies."

"As a result, TRY and TRY-denominated assets are likely to find the favour of the market for now, in the absence of unforeseen shocks and in a continuing low crude oil price environment. We, however, continue to retain a bearish view on both the lira and rates in Turkey."