The strength in USD has not been helping EMFX and the rebound of DXY 89.3 on Jan 5 to 90.8 today has curbed the risk appetite. US market is closed hence trading volumes should be limited. Banks have been generally weaker last week despite the two big conferences held for international investors. The decline in trading volumes is showing lack of new participation by foreign investors. President Erdogan's harsh words on interest rates and banks on Friday was not helplful to the market sentiment either.
CBRT's monetary policy decision is the most important macro development of the week and consensus is a hold of the rates at 17%.
Yapi Kredi completed the offering of its USD500m sub-debt issue with a 10-year maturity with an early redemption option at the fifth year. The offering was 6 times oversubscribed. The semi-annual coupon rate was 7.7875% and the issue will boost CAR by 120bps
Weekly Macro Agenda
Jan 21: January Consume confidence (December 80.1)
Jan 21: CBRT one week repo rate decision (Consensus no change at 17%)