USD Rallies But Trump Remains A Risk

Published 08/16/2017, 03:16 AM
Updated 12/16/2024, 11:48 AM
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Trump keeps being the primary focus for the US politics. Yesterday, after the speech which he has accused the KKK's and Neo-Nazis, he turned around 180 degrees and announced that "both sides should be charged. (by both sides he meant the parties at the Charlottesville)

Now, the number of the people who left from his business group inclined to 6 people. There is a survey on Twitter, which is done by Yahoo (NASDAQ:AABA), which asks people if CEO's are right to turn their backs to Trump. So far, it seems that 68% of the people, who took the survey, gave CEO's the right.

This show that the popularity of Trump continues to decrease amid his supporters. With 22% of probability that American government can be shut down because of the budget crisis, Trump continues to increase the risks.

On the economy side, with the support of FED Dudley's announcements and economic data, which announced much better than the expected, the dollar followed its trend in the green area as the probability of "a rate hike" and "balance sheet shrinking" inclined.

However, the US and Asian markets had a mixed close/day, The U.S. 10-Year government bond yields increased again where Japanese 10-Year bond yields continued their "pull-back".

Parallel to the Asian markets, we are expecting a positive/flat day from Turkish and other emerging markets. For TL assets, the technical indicators haven't eased yet, and another economics growth story is needed.

The new incentives and the new credit guarantee fund, which is supported the Turkish treasury, could be the new thing. However, there is a possibility that they can put too much pressure on the fiscal side.

The FOMC minutes will be the primary focus for the global markets, where the hints for the "rate hike" and "balance sheet shrinking" will be searched.

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