#forexbreakfast focus forex (eng)
In the past week, the dollar continued its decline, which has depreciated almost against all currencies after deluding US macro data. Bad week also for safe-haven currencies, that have depreciates after the rise in government rates in the US and EU. Afterward, the Eur/Usd exchange rate went above 1.19, consolidated below that level. The week was down for the Swiss Franc. The Eur/Chf exchange rate returning above 1.08. The president of the Swiss CB Zurbruegg confirmed his commitment to intervene on the exchange in case of need.
Small appreciation for Turkish lira. However, the overall picture remains weak. The inflation has appeared to be at 19.25%, with expectations at 18.95%. After that, it seems complicated for the Turkish CB to satisfy the wish of the government to reduce the interest rates. The second-best performance of the week has been the Polish zloty. The outcome that was beyond expectations has fueled the expectation of a rate hike in the short term. However, Governor Glapisnky declined the idea as very risky.
Despite the upside, the EURUSD failed to break out of the 1.1945 resistance, thus remaining in the short-term bearish channel. The daily oscillator marks an overbought situation. On the upside, 1.1945 remains the resistance to monitor, while on the downside we have 1.1693 and 1.16.
A declining week for the EUR / Czar, which went below the bullish channel started in June. However, the daily oscillator marks an oversold situation. On the downside, we have 16.56 and 15.80 to monitor. On the upside, however, we have 17.06 and 17.66.
Last week the Eur / Chf exchange rate returned above 1.08. If this level is confirmed next week, the target would be 1.098. On the downside, the first supports to monitor are at 1.0723 and 1.0631.