#forexbreakfast focus forex (eng)
Last week’s main driver was the weakness of the dollar due to the tracking of US government rates. Emerging currencies mainly benefited from this weakness. There are, however, two exceptions; ruble and Indian rupee; the first due to the renewed tensions on the Ukrainian front, the second due to the worsening of the pandemic situation and the decision of the central bank to launch a second QE worth one thousand billion rupees. The Eur / Usd exchange rate arrived above 1.19, both thanks to the improvement in the PMI index and thanks to the worsening of the US trade balance, which reached a new record. The Eur / Gbp exchange rate returned to the 0.87 area, in the wake of fears about the AstraZeneca vaccine. This week, however, the easing of restrictions is favoring the pound against all major currencies. Highlighted among the emerging currencies, the Real which closed the week appreciating against the dollar. However, it remains penalized by the heavy pandemic situation and by the frictions of internal politics.
Eur / Usd
Best week of 2021 for the Eurodollar exchange rate which went just below 1.1941. On the upside, the next levels to monitor are 1.2025 and 1.2184. On the downside, the first support is located at 1.1756.
Eur / Gbp
Last week the Eur / Gbp exchange rate interrupted 5 weeks of uninterrupted decline, climbing by 2.09%. The exchange rate came close to 0.87. To be monitored on the upside is the resistance at 0.8783 and the subsequent one at 0.8791. On the downside, 0.83 areas would only be achievable with a return below 0.8551.
Eur / Jpy
For the second week, the Eur / Jpy exchange rate closed higher reaching 130.69. The next resistance to monitor is at 131.24. The stochastic, however, in the overbought zone, this could mean a pause in the bullish movement. On the downside, the supports at 129.12 and 128.83 should be monitored.
Eur / Inr
Best week for Eur / Inr exchange for over a year. The target of the movement seems to be 90. Area 91.94 to be monitored. Downward to be monitored areas 88.60 and 87.80.