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.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
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.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
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