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LAST MINUTE: Watch out for dollar investors! They explained by saying ‘Can be expected’: Markets pointed at 4.30pm … – The right address for financial news

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LAST MINUTE: In global markets, risk appetite remains low amid growing recession fears ahead of today’s statements by Federal Reserve (Fed) Chairman Jerome Powell. The uncertainty that the steps the Fed will have to take in the coming meetings will put the US economy in recession will make it difficult to price the markets. Today, Fed Chairman Powell’s monetary policy report due to be presented to the Senate at 4.30pm and the Fed’s verbal guidance on the roadmap for the future should increase market volatility.

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The fact that the continuing hawkish statements by Fed officials are still aggressive in tone reinforces concern that the steps the bank will need to take in the coming period could put the country’s economy into recession. While it is almost certain that the Fed will raise the policy rate by 75 basis points at its next meeting, the likelihood of a 75 basis point hike in the September meeting is at the 46 percent level.
Making a statement yesterday, Richmond Fed Chairman Thomas Barkin said inflation is quite high and has spread to the bottom, and noted that interest rates are well below the level they should be. Claiming that the bank should raise interest rates as quickly as possible and be careful not to disrupt the market while it does so, Barkin does not have the right to vote in this year’s meetings.

THE CENTRAL BANK’S INTEREST DECISION IS WAITED

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Another important development for exchange rates is the much anticipated Central Bank of the Republic of Turkey (CBRT) interest rate decision. The CBRT will announce its interest rate decision on Thursday, June 23 at 2pm. The expectation for this month’s meeting of the Monetary Policy Committee (MPK) was that the weekly repo rate would be kept constant at 14.00%.

FIXED INTEREST AT 14 PERCENTAGE

The CBRT decided to cut the benchmark interest rate by 500 basis points in September, October, November and December to 14%. In the months of January, February, March, April and May, the Bank did not make changes to interest rates in line with expectations.

The CBRT interest rate decision will be announced on Thursday 23 June at 2pm.

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A CLEAN LOOK AT THE COURSES

With these developments, it was observed that risk appetite in global markets has improved and risky assets have offset some of their recent losses, while a mixed picture has emerged in developing country currencies (GoÜ). Continuing its horizontal trend against the dollar, the Turkish lira did not show significant changes and placed itself in the middle position among emerging market currencies, while the dollar / TL parity ended the day at around 17.34.

While Turkey’s 5-year CDS premium fell to 803.75 basis points, the 10-year bond yield was 19.76%. The dollar / TL rate is trading at 17.35 levels as of this morning. As the dollar index moves to the 104.70 level, the yield on US 10-year bonds is seen to trade at 3.26%. Euro / TL, on the other hand, meets the buyer at 18.19 TL.

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THEY SHARED THEIR EXPECTATIONS FOR THE DOLLAR

In Tacirler Yatırım’s analysis of the dollar / TL rate, “When we look at the technical outlook, we see that the USD / TRY parity has created a bullish channel on its daily chart. When we consider the lower and upper limits of the channel, we see that the short-term range 17.20 – 18.00 of the exchange emerges. Technical indicators point out that as long as the rate does not drop below the 17.20 level, possible withdrawals may be limited. On the other hand, if the 18.00 level is breached and the channel on the daily chart is broken upwards, the uptrend can be expected to gain momentum.

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First digits of the day in USD / TLFirst digits of the day in USD / TL
Anyone with dollars should hear this news!Anyone with dollars should hear this news!
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