OUR SUMMARY
As the markets await the Federal Reserve’s decision this evening, most are expecting the central bank to keep interest rates steady, with only two cuts anticipated for the remainder of the year. However, many analysts predict that the Fed will lower its growth expectations for this year, a move that could extend the
current weakness of the USD.
The euro has been one of the top performers in recent weeks, but recent events, including Putin’s refusal of the 30-day ceasefire, have led to a partial reversal of its gains. Consequently, investors are flocking to gold, seeking safety amid
growing uncertainty.
Meanwhile, Turkey’s currency, the Lira, has dropped by 5% following the arrest of President Erdogan’s main rival, Imamoglu, just days before he was set to challenge Erdogan for power. This political turmoil is causing ripples through regional markets, negatively impacting currencies such as the Hungarian Forint (HUF) and Polish Zloty (PLZ), as investors grow concerned about instability in Central Europe.
