2 Important Developments to Watch This Week

2 Important Developments to Watch This Week What are the 2 important developments to watch this week? What awaits the market? On Wednesday, December 16, the UK, Eurozone and US PMI figures will be announced. Accordingly, while a decline is expected in PMI indicators, which are important in economic terms, due to the restrictions on the service front, the way they reflect on other sectors will be monitored. In addition to the economic indicators, the 2021 monetary and exchange rate policy presentation of CBRT President Naci Ağbal will be followed as a more important development. In the presentation, which will be broadcasted live on the website of the CBRT at 10 am, the route which the CBRT will follow will be carefully monitored. While moves are expected to prevent loss in reserves and create new reserves, foreign exchange auctions are expected to come to the fore in this sense. The market expects a downward trend in inflation and a firm stance towards balancing the volatility on the exchange rate side. Accordingly, it is hoped that the CBRT will use the interest weapon and make an interest rate increase in the range of 100-150 bp at the December MPC meeting. In this regard, signals from CBRT President Naci Ağbal are important. Another important development of today will be the FOMC meeting decision to be announced at 10 pm. The current low interest rate is not expected to change. In asset purchases, even if a new acquisition such as the ECB is not foreseen, the opinion of the committee on the general situation will be followed. In the third quarter of the year, although it is stated that no rapid action will be taken to exceed the inflation target, the expected recovery is not realized while there is pressure on the inflation front. The employment sector, which the FED sees as a fragile point, has been experiencing difficulties in recent weeks. On the other hand, the government has still not reached an agreement on the stimulus package. The committee's sectoral assessment will be important for the current outlook. It is estimated that the weakness in the US Dollar Index, which reached the lowest level in the last 2.5 years, will continue in the rest of the month. It is estimated that the CBRT will have more say in the USD / TL exchange rate than the FED. Accordingly, the attitude of the CBRT may affect the positive pricing of the TL.     Source: Investing.com