#forexbreakfast focus forex (eng)
Last week we saw a general depreciation of the dollar, except for the yen, which is affected by the rise in Western rates and the energy crisis. Eur / Jpy exchange rate at the highest for 4 months. Good week for the pound back to pre-pandemic levels. Governor Bailey reiterated the need to contain inflation risks. A rise of at least 25bps is expected in November.
The Turkish lira has been the worst currency of the week, after the sacking of two voting board members and another member of the Monetary Board Committee. The Eur / Try exchange rate reached a new high of 10.77. A further 100bp rate cut is expected this week. Good week for commodity currencies, especially those related to brent. Good week also for the Australian dollar and South African rand thanks to the rise in commodities.
Last week the Eur / Usd exchange rate returned to the 1.16 area. The daily oscillator is coming out of oversold. On the upside to monitor we have the resistance at 1.1641 followed by 1.1693. On the downside, the first support is at 1.1530.
The EUR / Gbp was down and broke the support at 0.8461, the low part of the channel in existence for weeks. The next target could be the support at 0.8426. If this break is confirmed this week, it will pave the way for 2020 lows. The daily oscillator signals an excess situation, a possible rebound in the short term. On the upside, resistance at 0.8461 remains to be monitored.
Upward week for the Eur / Gbp which broke the side channel in place for weeks, surpassing the resistance at 130.70. On the upside, resistance at 133.68 remains to be monitored. On the downside, however, the support at 130.70 remains to be monitored.