Important Developments To Monitor In The Upcoming Week

What are the important developments to monitor in the upcoming week? What awaits the markets? Here are the details..

Last week, the dismissal of the Chairman of the Central Bank of the Republic of Turkey(CBRT) domestically occupied the agenda, while pricing was against the Turkish lira in parallel with this development throughout the week. Looking at the global markets, 10-year bond yields in the US fell in the last week, but DXY reached the highest level in the last 4 months. With the rise in the US dollar indicator, declines were seen in the currencies of developed and developing countries. Next week, the confidence index, manufacturing PMI and trade deficit will be announced as economic data domestically. Although the data is not expected to be effective in pricing, the focus will be on names in the cabinet and statements from officials during the week. President Erdogan, who did not make a statement regarding the change of CBRT Chairman at the AK Party General Congress last week, stated that the pricing in the markets did not reflect the truth. While Erdogan is expected to make a statement on this issue after his presentation in the cabinet, TL fell to the lowest level this week against foreign exchanges since November and USD/TL exchange rate completed the week at 8.14. On the global front, US data will be important among the data to be followed next week. ADP private sector employment which will be announced on Wednesday is expected to increase by 525,000 people in March, ahead of non-farm employment expected to be announced Friday. This is the highest forecast since October. It is predicted that the data that fell far behind the expectations in February will cause the February figures to be revised in March. ISM Manufacturing PMI, which is expected to be announced on Thursday, rose to 60.8 in February and reached the highest level after September 2018. While the increase is expected to continue in February, the median average is expected to be 61.3. Non-farm employment will be announced on Friday. While hourly wages in the data set are expected to remain unchanged by 0.2 percent, the unemployment rate is expected to continue to decline towards 6 percent. The unemployment rate, which went down to a single digit after the sudden increase in the quarantine process, fell to the lowest level of the period in February. Expectation in employment figures is; There was an increase of 182 thousand people per month. The number of unemployment applications received at the lowest level of the pandemic last week strengthened employment expectations. If the indicators to be announced this week are also high, non-farm employment may increase. More than expected data may signal that employment in the US economy is beginning to improve. In parallel with this signal, the US dollar may continue to maintain its strength. If the data to be announced are not far below expectations, the negative impact on the US dollar may be limited.     Source: Investing.com