EUR/USD
The pair finished the week sharply lower after the ECB not only cut the benchmark borrowing rate by 25bps, but also slashed the deposit rate to zero. This, together with the fact that the central bank refrained from announcing another LTRO program meant that the pair came close to making a test on this years low printed at 1.2288. Elsewhere, this week’s release of the latest PMI reports underpinned the fact that the economic slowdown is having an impact on the broader economic activity and not just the peripheral Eurozone. In terms of technical levels, supports are seen at 1.2288, 1.2190/51 and then at 1.2132. On the other hand, resistance levels are seen at 1.2365, 1.2401 and then at 1.2450.GBP/USD
The pair trended in tandem with EUR/USD for much of the week and settled with significant losses even in spite of the fact that the ECB cut rates and slashed the deposit facility to zero. As expected, the BoE announced another expansion to its Asset Purchase Facility (APF) program by GBP 50bln, but kept the benchmark borrowing rate unchanged at 0.50%. In terms of technical levels, supports are seen at 1.5500, 1.5485 and then at 1.5473. On the other hand, resistance levels are seen at 1.5598 which is the 21DMA line and then at 1.5601 which is the 10DMA.
USD/JPY
The pair settled the week little changed after this week’s monetary policy easing actions by various central banks prompted speculation that the BoJ may soon follow. In terms of technical levels, supports are seen at 79.60/41 and then at 79.23. On the other hand, resistance levels are seen at 80.02/10 and then at 80.56.
