ONLINE FOREX BROKER
2021-02-04 • Updated
The Turkish lira surged after Tukey reported inflation climbed to 15% in January. It bolstered analysts’ expectations that monetary policy will be kept tight for a longer period. Moreover, the International Monetary Fund (IMF) published its forecast that Turkey's economy will grow by 6% this year. IMF’s projections added optimism and underpinned the Turkish lira. In addition, the Purchasing Managers' Index (PMI) for Turkey's manufacturing sector rose to 54.4, signaling the industry expansion in the country. As you can see, from the fundamental point of view, the bias is bullish for the lira. Let’s now make some technical analysis to prove our hypothesis.
Now the pair is trading at the levels unseen since August 2020 and heading towards the key psychological mark of 7.00. The move below this level will prive the price to the next support of 6.8500. However, we see that the RSI indicator went below 30, giving a sign “hey, trader, the price has entered the oversold area, be ready for the reverse”. Elsewhere, the price has dropped below the lower line of the Bollinger Bands indicator, signaling the upcoming pullback to the upside as well. Two indicators have shown that the price should reverse to the upside soon. Resistance levels are 7.3500 and 7.5000.
So, the technical analysis doesn’t coincide with the fundamentals. We might assume that the pair will trade sideways for a while ahead of the further increase.
Anyway, follow Friday’s NFP tomorrow which will define the new vector for the pair.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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