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The United States (US) President Donald Trump recently crossed wires after having a chitchat with his Turkish counterpart Recep Tayyip ErdoÄŸan. While his initial comments show concerns over the S400 buys, Mr. Trump mostly praised Turkey and the latest meeting.

Key quotes

Turkey’s S400 buys creates serious challenges for US.

Directed (US Secretary of State) Pompeo, advisers to work for S-400 solution.

Had   a wonderful, productive meeting with Turkey’s Erdogan.

Wants to thanks Erdogan for releasing detainee Serkan Golge.

Turkey is a great NATO ally.

US and Turkey relations have tremendous potentials.

Pleased with cooperation with Turkey on fighting terrorism.

Turkey has more than 200 Islamic state fighters incarcerated.

FX implications

The USD/TRY pair ticks up to 5.74 after the news. It portrays an overall rosy picture of the relations between the two nations. However, uncertainty surrounding the S400 buys from Turkey keeps the risk factor alive.