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Low Volatility Remains Until Jackson Hole

Published 08/22/2017, 02:26 AM
Updated 07/09/2023, 06:31 AM
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>> Greenback continue to lose demand as the political stress keeps going on.

>> There haven't been any major volatility in the US indices at yesterday's close due to Jackson Hole meeting in 24th and 25th of August.

>> The US Dollar Index and 10-year US government kept being sold in global markets.

>> The effect, as aside to Trump effect, of FOMC members' as being hesitant on the rates and balance sheet shrinking is the main reason of why dollar and government bonds lose value in global markets.

>> Global investors do not expect an aggressive statement from Yellen due to inflation which does not seem to increase in a close time.

>> This situation brings up two question from global investors such as "do they fail on implementing QE?" Or "does the increase in inflation stop just for the time?"

>> The same hesitation can be seen on the EU side as well. Draghi seems to be confused because of strengthening euro against the major currencies. From the ECB minutes, they asserted that they do not want a high valued euro.

>> Despite the calm condition in the US markets, the Asian markets seem pretty active, and they follow a trend in the green area. Japanese 10-year government bonds are being sold, which increases the bonds rates'.

>> Parallel to the Asian markets and with the support of the USDTRY at 3.50 level, a 0.30% - 0.35% opening the green area is expected in BIST 100.

>> Mehmet Simsek's announcements, which stated that the date of the election wouldn't be earlier and new reforms are on the way to support the 5% growth, supported the fall back of the USDTRY.

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