Recep Erdogan won yesterday’s presidential election after his Justice and Development Party, together with Nationalist Movement Party, grabbed the majority of the seats in the parliament. See how this affected the Turkish lira and other global currencies.
Fed minutes released yesterday revealed that apart from a unanimous agreement to raise interest rates for the first time in a decade last month, the committee expressed concerns as to the results of future Trump policies, with a view to maintain a “wait-and-see approach.”
The Fed did not surprise, they did what was expected of them on the headline, but it’s their foresight that has capital markets wildly gyrating.
The big takeaway from yesterday’s FOMC meeting is the increase in the pace of tightening that’s been signaled for next year. Policy members voted unanimously to raise its target for the fed funds rate up +0.25% to +0.5%- 0.75%.
Today is D-day for the European Central Bank (ECB).
Market consensus does not expect euro policy makers to deliver a new round of stimulus this morning. Nevertheless, officials are expected to release a new raft of economic forecasts, which should help provide the market with further clues on how much stimulus the ECB is likely to deliver in the future.