#forexbrekfast focus forex (eng)
Last week was marked by meetings of several central banks. The emerging bought market proved to be active in the policy of changing the reference rates. Inflation is accelerating and many central banks have promised further tightening measures. The Brazilian and Turkish central banks raised the cost of money (75bps and 200bps) both higher than expected. It surprised Russia that it raised the cost of borrowing by 25 bps. The actions of the Turkish Central Bank were canceled, however, by Erdogan’s decision to sack the governor of the Central Bank, to replace him with a former member of the government party, who appears to be very critical of the attitude adopted by the Turkish CB. The Japanese CB also activated, changing the fluctuation band on the ten-year rate and changing the purchases of equity ETFs.
Eur / Usd
Laterality week for the Eurodollar that has remained in a range between 1.1837 and 1.20. The oscillators offer no ideas and only a break of the two levels could give direction to the change. If the resistance at 1.20 is broken the next step could be 1.21. While a breakout, the downside could head towards the 1.1756 area.
Eur / gbp
The exchange rate marked new lows for the year reaching 0.8533. The chances of a technical rebound increase. The weekly oscillator has been oversold for some time now. If the resistance at 0.8623 is broken, the next target could be 0.8791.
Eur / Yen
After several attempts to break out of the resistance at 130, the exchange lost strength towards the last few sessions of the week. Oscillators are in overbought terrain, increasing the risks of profit-taking. On the downside, the 128.90 area remains to be monitored.
Eur / try
Erdogan’s decision to replace the central bank governor has brought new bullish pressures on the Turkish lira exchange rate. Should the resistance at 9.42 and the resistance at 9.55 be overcome, the road to the all-time highs of 10 would be opened again.
Eur / rub
US pressure from President Biden renewed the weakness of the ruble, leading to a marked rise in the exchange rate. On the downside, only a close below 86.50 could reinforce the bearish movement. On the upside to be monitored 88.80.