The Bank of England (BoE) did not change its asset purchase program yesterday in line with the market expectations. After the meeting stated that the outlook for the economy was unusually uncertain and that a peak increase in the unemployment rate was expected in the second half of the year by 7.75 percent, tension had increased over sterling assets. However, according to a later statement, after it was stated that the elasticity of slowing the bond buying rate did not carry a signal about negative interest rates, the value gain on the Sterling side increased. Thus, it is seen that the parity, which stretched down the 1.36 level, ended the day with attacks on 1.37 resistance.
If we look at the US side, macroeconomic data announced above expectations causes the dollar to increase its lucrative image. The overall G10 currencies were under dollar pressure yesterday, especially with the decline and the increase in factory orders. Today, the non-farm employment report to be announced on the US side will be very critical in terms of parity prices. On the other hand, as the expectations for the US stimulus package increase, the positive image of the significant financial results announced stands out as another factor supporting the risk appetite in the markets.
After all these developments, it is seen that the parity, which pushed the 1.3630 level down, accelerated the price attack towards the 1.37 level with the return from this level. With the crossing of this level, the upward trend in the parity can gain momentum with 1.3780 and 1.3855 resistance levels. However, in a withdrawal that may occur in the parity, we are following the acceleration of the decreases with the support of 1.3630 within the frame of 1.3540 support.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.