This potentially leads to diplomatic escalation involving entire NATO that comprises of all North Atlantic 28 nations including U.S.
Recent developments: On the flip side, Russia will never desist this incident lightly. A decree has also been signed by Russian president Putin covers all imports from Turkey.
The decree also calls for an end to charter flights between the countries.
Russia has been a second largest trading partner of Turkey, while more than three million Russian tourists visited Turkey last year.
The decree has also advocated Russian tour operators to refrain from selling packages to Turkey, while Turkey's Foreign Ministry has warned its citizens against non-essential travel to Russia until the troublesome situation gets calm down.
What is adding extra pressure on Turkey: In addition to that the market's concerns about President Erdogan taking in charge over policymaking was certain through the proposal of the new cabinet yesterday, which left out ex-head of economic policy, Mr Ali Babacan (who held high credibility among foreign investors for his 'balanced' and centrist stance).
As a result, we've observed that Turkish lira is going to be under deep pressure overturning recent rallies.
The USDTRY has actually entered a new zone of set up after military conflict between Turkey and Russia.
Since September-2015, we've been firmly that is articulated in our every post about USD/TRY . Hence, our advise is to stay cautious about TRY's further depreciation.
Refer below link for our last week's recommendation, those who followed the strategy would have safely positioned by hedging: