While the dollar continues its horizontal course at 34.35 TL, the decline in the euro continues.
Euro started today at 36.20 TL. This figure marks the lowest level since August.
The euro fell into pessimism after Trump’s victory. Donald Trump’s “America First” policies and expectations that he will impose additional trade and customs tariffs on the Eurozone have pushed the Euro to the bottom of the last year against the dollar. Eur/USD parity dropped to 1.053.
German Central Bank President Joachim Nagel said that if the Trump government imposes additional customs tariffs, there will be a 1 percent loss in Germany’s production. This rate corresponds to approximately 41 billion euros, based on Germany’s 2023 gross domestic product.
Internally, another data coming after the current account deficit has been positive for 4 months shows that there is a smell of interest rate cuts. Housing sales across Türkiye increased by 76.1 percent in October compared to the same month of the previous year, reaching 165 thousand 138. Buyers’ expectations that the declining inflation figures for the last 4-5 months will lead to interest rate cuts seem to have pushed housing demand forward. November inflation will be a sign to understand when the CBRT will start reducing interest rates.
Inflation in the USA increased by 0.2 percent in October, in line with monthly expectations. Annual inflation increased from 2.4 percent to 2.6 percent. In October, consumer prices excluding food and energy increased by 0.3 percent on a monthly basis and increased by 3.3 percent on an annual basis.
The fact that the data was within expectations decreased the dollar against other currencies and increased the risk appetite in the markets.
Banking data will be followed today. Outside, the growth figures of the Euro and unemployment benefit applications in the USA will be followed.
On the other hand, the statements made by Fed Chairman Jerome Powell will be followed. Powell is expected to make statements regarding the possible inflation of the loose economy in the Trump era.
