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USD Gains Back Its Strength

Published 09/28/2017, 02:20 AM
Updated 07/09/2023, 06:31 AM


* The positive sentiment, which supported by Trump's tax reform and "hawkish" statement of Yellen on "interest rates", continued to boost the uptrend of the US markets.


* However, the US Senate was unable to decide on the health care reform, which increases the happening of the same scenario for the tax reform. If this is the case, the optimistic sentiment for the US markets can make a 180-degree turn.


* The US dollar index up moved to 93.63 level and the U.S. 10-Year government bonds' yields rose to %2.355. It seems that the US started to get its QE money back.


* Depreciated Japanese Yen and increased US bonds' yields with the inclined US markets supported by the tax reform caused a mixed opening for the Asian markets.


* The 22nd of October, the early election date for the Japanese government also increases the risks on the Asian markets.


* Due to conditions for the US dollar and optimistic scenario for global rates, the continuation of the negative sentiment is expected in BIST 100. It seems that local investors did not like the middle term plan for the 2018 - 2020. Especially the increases on the taxes for financials can slow the growth. You can see the details here


* As the BIST 100's trend seems to be the downside, the continuation of the uptrend of the dollar and Euro is expected for Turkish markets.


* Euro depreciated against the dollar to 1.17 levels by the "tax reform" and Yellen's support.

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