US Dollar Weakens after Powell's speech

Brexit negotiations were on focus last Tuesday and the UK released the no-deal impact analysis documents. This week, we can expect more noise coming in that will not only influence the Pound, but also UK equities. About the US-China Trade war as we expect, there was no real progress from low-level talks between the two countries on Wednesday and Thursday last week. The U.S added an additional 25% tariffs of $16bn Chinese goods at the end of the week. China’s response to the latest tariffs will probably set when the two leaders meet face to face. Turkey was on holiday for most of last week. We can expect that the government will start working hard to begin delivering the markets with fiscal and monetary policy plans to address inflation and the slide in the Turkish Lira., The concerns about the possibility of an economic meltdown will still be one of their highest priorities. Powell stated that gradual rate hikes are probably the best way to protect the U.S. economic recovery and keep job growth as strong as possible and inflation under control.