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Just before the US Vice President Mike Pence and Secretary of State Mike Pompeo prepare to broker a truce the Kurds and Turkish army in Syria, the BBC ran a story that says that the Turkish President Recep Tayyip Erdogan rejected a US call for an immediate ceasefire in northern Syria.

The report also mentions that Ankara wants a safe-zone of nearly 20 miles inside Syria to support nearly two million refugees.

Key quotes

“They say ‘declare a ceasefire’. We will never declare a ceasefire.”

“They are pressuring us to stop the operation. They are announcing sanctions. Our goal is clear. We are not worried about any sanctions.”  

FX implications

While Turkish Lira (TRY) is far from active hours, the news could weigh on the currency while also supporting safe-havens like the Japanese Yen (JPY), Gold and the Swiss Franc (CHF).