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More Hawkish Fed Than Expected

Published 09/21/2017, 01:49 AM
Updated 07/09/2023, 06:31 AM
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The FED acted more "hawkish" than expected despite leaving the interest rate unchanged. As the projections for rate-hike possibilities remain the same, the possibility of a rate hike in December increase to 72%, which supported the gains of the US dollar against all currencies. FED still expects three rate hikes in 2018.

In the normalization process, FED announced that the act would start in October by cutting $10 billion each month.

FED stated that the economy is in its moderate but healthy growth level despite the low inflation, new business investments keep going.

The US markets to the FED's statement confident as the economic recovery continues and managed to close the day in the green area. The ten year US government bond yields' increased to 2.268 with the incline of the dollar index to 92.68 level.

However, the Asian markets aren't as positive as the US markets. The sales in the Asia markets continued this morning with an increased presser in the red zone where the Japanese yen continued to depreciate against the US dollar.

On the other hand, the Japanese Central Bank didn't change its policy and kept the rates at -0.10% level.

Due to the FED, the strengthening dollar and Asian markets, a 0.10% negative opening is expected in BIST 100. As the trend move keeps below of the moving averages, the pressure in BIST 100 has a chance to increase, which will support the uptrend in the US dollar.

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