23/03/2023 Evening Reports
- The Swiss National Bank (SNB) raised the interest rate by 50 basis points to 1.50%, as expected, at its meeting today. In the statement made, it was stated that the possibility of additional interest rate hikes was not ruled out, that they were ready to intervene in the foreign exchange markets, and that inflation had been on the rise since the beginning of the year. SNB Chairman Jordan also stated that inflation is very high and they have the power to sell some foreign currency again.
- The CBRT (Central Bank of the Republic of Turkey) did not change the 8.50% Policy Rate at its meeting today, as expected. In the statement, it was stated that the monetary policy stance was sufficient to support the post-earthquake recovery, that financial conditions became more important to sustain the acceleration in industrial production and the upward trend in employment, that loans met with economic activity in line with their purpose, and that the current account balance was at sustainable levels. It was stated that the price stability is important for price stability.
- The Bank of England (BOE) also raised the interest rate from 4.0% to 4.25%, following the Fed and SNB. In the evaluation made, it was stated that 7 members voted to increase the interest rate and 2 members voted to keep the interest rate unchanged, the credit conditions continue to be closely monitored, the GDP is expected to increase slightly in the 2nd quarter, the banking system maintains strong capital and liquidity and remains resilient.
EUR/USD – Approaching the Peak of the Near Era After the Messages from the FED…
After the statements and messages from the FED, the upward trend in the parity continued. As of today, there was a reaction up to 1.0930. This zone is very close to 1.1030 in the Euro rally formed after 0.9550 is seen and is the previous intermediate resistance.
In general, as long as there is no sagging below 1.0800 in the current image, we can predict that the image will continue step by step in favor of the Euro. However, in possible movements below 1.08, the uptrend line, which comes from 0.9550 and coincides with 1.0655 as of now, may come to the fore.
GBP/USD – UK Challenges 1.2310 Resistance After Interest Rate Decision…
The Bank of England, at its meeting today, decided to increase interest rates by 25 basis points with the approval of 7 out of 9 members. As such, the UK’s policy rate rose from 4% to 4.25%. Voting was confirmed with an extra participation of 1 member as stipulated.
After the decision, the pair instantly rose from 1.2270 to 1.2330, while it regressed again and is now priced at 1.2290.
As of today, the pair has retested the 1.2310 resistance zone, which it tested yesterday. This level coincides with the Fibonacci 78.6 retracement of the latest 1.2455/1.1830 drop. In general, it can be predicted that the movements in favor of Sterling will continue as long as it does not sag below the Fibonacci 61.8 retracement seen here (1.2200). For this reason, we will follow the pricing between 1.2310 and 1.2200.
USD/TRY – CBRT Did What It Was Predicted, Trend Continues in 19.04 Region…
Today, the Central Bank of the Republic of Turkey announced its monetary policy decision and left the policy rate unchanged at 8.5%. As we approach the end of the week, let’s follow the image of the dollar rate on the weekly chart. We check the 8-week average to monitor the current trend and expect the current picture to continue unless there is a strong weekly candle close below this average.
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XAU/USD – He Couldn’t Break The 1980 Resistance He Tried After The FED In The Day…
The yellow metal rose rapidly to 1980 levels after the relatively dovish statements came from the FED meeting yesterday. This reaction coincides with the Fibonacci 61.8 retracement of the 1935 drop triggered from the 2010 level in the last few days on the hourly chart. He made this correction, along with the rhetoric from the FED meeting. On the new day, although there is a slight profit sale, the Fibo is close to the 61.8 region. It continued during the day between 1980/1970.
It may technically be premature to wait for possible positive movements unless we stay above 1980 in intraday movements. For this reason, we will have to pay attention to the 1980 resistance.
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