HSBC: Expects Turkey's key interest rate to remain at 45% this year

As the market gradually digests expectations of a more dovish stance from the Federal Reserve, factors related to the midterm elections, and news that the U.S. Treasury may increase bond buybacks, Citi's FX strategy team has recently turned bearish on the short-term outlook for the U.S. dollar.

A key inflation indicator in Japan has accelerated for the second consecutive month, increasing the likelihood that the Bank of Japan may raise interest rates again soon. Meanwhile, the market is speculating that the central bank could take action as early as September.