The week in which the Fed will announce its interest rate decision started with the dollar/TL exchange rate above 33 TL at 33.02 TL, while the euro started at 35.87 TL.
This week, all eyes will be on the Fed’s interest rate decision to be announced on Wednesday. The Fed is expected to leave the current policy rate unchanged between 5.25% and 5.50%. Markets expect the Fed to start cutting rates in September. This is also what is being priced in. While the probability of the Fed leaving rates unchanged in July is priced in at 90%, a 10% cut is being priced in.
The DXY index, which measures the dollar’s strength against other currencies, started the week with a decline at 103.
Inflation, a criterion for the Fed’s interest rate cuts, has begun to ease toward 2 percent. The tone of Fed Chair Jerome Powell’s speech is curious in light of the latest data.
Domestically, the tax package was passed by the parliament. The Ministry of Treasury and Finance explains the package in general as “We will collect less taxes from those who earn less, and more taxes from those who earn more.” The Ministry of Treasury and Finance announced that tax audits have begun for 27 percent of the 2,815 large taxpayers.
This week, foreign trade figures and tourism revenues will be monitored domestically.
