EURTRY VOLATILE, RETURNS FROM 6.90 LEVEL
The buying potential n the indices across the global markets has accelerated after the Fed's unlimited monetary expansion move and the US Senate's announcement of the stimulus package. After the Fed's move, while the Dollar increased its depreciation against other currencies, these losses gained depth with the contraction in the manufacturing and service PMI figures in the USA. Thus, with the appreciation in the Euro currency, rallies towards the level of 7.00 continue. Especially, the fact that the Fed increased its moves to support the markets due to the coronavirus outbreak, creates relief on the developing countries, while the Turkish Lira is undergoing some appreciation.
While increasing numbers of coronavirus cases in Europe led to concerns, some slowdown in the number of new cases in Italy created positive pricing on the euro and European indices. With the start of the impact of the coronavirus epidemic on macroeconomic data, both the manufacturing and service PMI data of March in the Eurozone yesterday compounded a retraction from 51.6 to 31.4. The collapse of the Euro Area business activity before the expectations in March indicates that the coronavirus effect may be much deeper. Today, as another development, Germany's March Ifo index was 86.1, well below expectations. Thus, the recession risk related to the Euro Area economy is still on the table, and it continues to trigger the tension on the Euro side.
On the TRY side, while the coronavirus epidemic process has been circumvented under the leadership of the Minister of Health Fahrettin Koca, Turkish Lira has settled in a positive region on the currencies of the developing country. When we look at the EURTRY pricing, it can be expected that the purchases will gradually accelerate with the resistance levels of 7.10 and 7.20 if the returns from the level of 6.90 settles on the 7.00 resistance. In a possible Turkish Lira push, the 50-day exponential moving average level of 6.80 support continues to be current.