Headlines the Economic Calendar on Thursday
Turkey Interest Rate Decision: Turkey Central Bank is going to announce its monetary policy today. Most economists expect the Central Bank of Turkey to deliver a 150bp rate cut. The Turkish lira's reaction will depend on whether the CBT over-delivers versus market expectations
ECB Interest Rate Decision: The ECB will announce its rate decision and forward guidance today and incoming ECB President Christine Lagarde may announce further actions at the press conference. This week's meeting will be the first monetary policy meeting for Lagarde.
U.S. PPI Inflation: Watch out for U.S. Producer Price Index today. U.S. PPI is predicted to rise to 1.2% from 1.1%, while Core PPI inflation is expected to stay at 1.6% A Higher than expected reading should be taken as positive for the U.S. dollar
Decision Time For The UK: The United Kingdom will be holding General Election today. The uncertainty of the general election has the potential to generate increased volatility and turbulence in GBP crosses.
Voting starts at 10:00 GMT and end at 22:00 GMT and counting will be started immediately. The results are expected to be finalized on Friday morning.
Sterling has been moving higher versus the U.S. dollar on increasing confidence that today’s general election will return the Conservative Party to power with a healthy majority.
Technical Analysis:
EUR/USD: The U.S. Dollar dropped versus the euro yesterday after the Fed Rate Decision.
Ahead of the ECB Rate Decision, if the EURUSD upward movement continues above 1.1114, the daily resistance level can be seen at 1.1165. On the downside, if the price drops below 1.1114, we will watch 1.1052 as the next support level.
Support : 1.1114 - 1.1052 - 1.1007
Resistance : 1.1165 - 1.1237 - 1.1307
USD/JPY: The USD/JPY downward movement paused at the 108.52 daily support level yesterday. If the price stays above 108.52 on a daily basis, we will follow 108.79 and 109.09 as the resistance levels. In contrast, If the pair breaks down below 108.52, we will see the next support level at 108.14
Support : 108.52 - 108.14 - 107.82
Resistance: 108.79 - 109.09 - 109.39
USD/CAD: Keep your eye on the daily resistance level of 1.3181 in the USD/CAD pair. If the pair stays below 1.3181 on a daily basis, the downward movement may gain more power and we will watch 1.3123 as a key support level. In contrast, if the pair goes beyond 1.3181, the next resistance level will be at 1.3233.
Support: 1.3123 - 1.3071 - 1.3009
Resistance: 1.3181 - 1.3233 - 1.3287
GBP/USD: The United Kingdom will be holding General Election today. The uncertainty of the general election has the potential to generate increased volatility and turbulence in GBP crosses.
We are closely watching the 1.3231 main resistance level in the GBPUSD pair. In order for the rise to continue, it needs to break out and stay above 1.3231 on a four hourly basis. In this case, the next daily resistance level will be at 1.3313. Otherwise, the key support level can be found at 1.3136
Support: 1.3136 - 1.3046 - 1.2947
Resistance: 1.3231 - 1.3313 - 1.3392
USD/TRY: Ahead of the Turkey Rate Decision, focus on the 5.7679 daily support level in the USD/TRY pair. As long as the pair stays above 5.7679 on a daily basis, the upward movement may gain more power and we will face the resistance level at 5.9763. On the downside, if the pair breaks down 5.7679, the next support level will be at 5.6027.
Support: 5.7679 - 5.6027 - 5.4538
Resistance: 5.9763 - 6.1475 - 6.3364
EUR/JPY: The EUR/JPY pair found buyers from the 120.13 daily support level at the beginning of this week and then showed an upward movement. If the upward movement continues above 120.75, we will watch the key resistance level at 121.59. On the downside, if the pair drops below 120.75, the next daily support level will be at 120.13.
Support: 120.75 - 120.13 - 119.49
Resistance: 121.59 - 122.37 - 123.14
NZD/JPY: The NZD/JPY pair jumped up above the 71.00 major support level yesterday. If the upward movement continues, we will watch the key resistance level at 71.83. In contrast. If the price falls below 71.00, the next support level will be placed at 70.38.
Support: 71.00 - 70.38 - 69.62
Resistance: 71.83 - 72.41 - 72.99
BCH/USD: The BCH/USD pair is now trading above the key support level of 200. As long as the Bitcoin cash price trades above 200 on a four hourly basis, we might see an upward movement, we will watch the resistance level at 249. On the downside, if the pair breaks down below 200, we will follow the next major support level at 164.
Support : 200 - 164 - 139
Resistance: 249 - 278 - 307