Markets are starting the critical week with activity. The dollar appreciates before the US Federal Reserve's (Fed) interest rate decision and messages. Domestically, it is wondered what kind of action the CBRT will take, as well as the Fed. Before two important expectations; While the dollar gained value globally, TL opened with a weak outlook domestically.
The dollar/TL, which saw over 8.65 from 8.42's with its attack after the middle of last week, continues to rise on the first day of the new week. Moving sideways at the level of 8.64 in the morning hours, the dollar/TL rose above 8.70 with the increase in transactions. As of 11.48 hours, $/TL is 8.67.
Dollar/TL had last seen above 8.70 in the first week of July. All-time high level of 8,8122 in Dollar/TL was seen in the last days of last May.
WHAT ARE THE IRON PRICES?
Iron prices are also expected to be affected by the rapid rise of the dollar. Iron prices in Istanbul had increased by 50 TL to 6 thousand 800 liras on Friday. A new increase is expected in the market today.
For the last 3 months, iron prices have been going through volatile days like many items in the construction industry. Iron prices, which reached the highest price of the last 3 months with 7 thousand 420 TL on June 21, had decreased a little since that day. It even regressed to the level of 6,500 on September 2nd. However, in recent days, rebar has started to move upwards again.
Eyes on the Fed and the CBRT
The messages to be given by the US Federal Reserve (Fed) on September 22 are very important for the course of the markets. Investors will try to get new signals about when the asset reduction will start after the recent strong data. Global markets will also follow the interest rate decisions of the Bank of Japan and the Bank of England this week.
The focus of the domestic market is the MPC meeting on September 23. The policy rate is expected to hold steady at 19 percent, according to market surveys. However, although the expectation is in this direction, it is stated that the possibility of a rate cut has started to be priced in.
Kavcıoğlu did not refer to his commitment that he would apply interest above the inflation rate at the investor meeting at the beginning of the month and gave the impression that there would be no interest rate hikes and that their reductions were approaching. Kavcıoğlu, in a public speech after the closed investor meeting, stated that the CBRT would focus on monitoring core inflation, which is approximately 200 basis points lower than the policy rate, instead of the inflation rate, which is higher than the policy rate.
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