USDCHF: Swiss Central Bank assessed readiness to support Credit Suisse
The USDCHF trading instrument shows a moderate decline under the influence of the corrective impulse received earlier, where the asset occupied local highs for March 9.
The franc gained support amid a change in investor sentiment on the further development of the crisis in the banking sector in Europe and the United States. We remind you that at the beginning of this week, official statements were made about the liquidation of a number of credit institutions in the United States, which required the intervention of federal authorities to localize the negative effect. Moreover, there was information about the liquidity problem of the financial institution Credit Suisse, the second largest bank in Switzerland, which lost 30% of the value of securities, operations on which were stopped for some time because the largest investor Saudi National Bank refused to make additional investments. According to Bloomberg, by the end of 2022, the National bank of the Kingdom of Saudi Arabia acquired 9.9% of the Credit Suisse package, and currently its share has decreased by 30% or more than 500.0 million francs. Meanwhile, the SNB confirmed its readiness to provide additional support for Credit Suisse in the amount of 50.0 billion. Swiss francs, which led to the stabilization of the situation. Reduction of losses from Credit Suisse's American depositary receipts decreased in price by up to 14% on the comments of regulatory authorities, and the European markets had already completed trading by that time.
- Resistance levels: 0.9300, 0.9350, 0.9400, 0.9439.
- Support levels: 0.9258, 0.9200, 0.9150, 0.9100.
EURGBP: the ECB raised the percentage indicator
During morning trading, the EURGBP pair shows a moderate decline, as part of the development of a short-term downtrend from March 8 and is located in the 0.8750 area. The asset is at the local minimum for December 21, updated last Wednesday.
European investors continue to evaluate the final minutes of the ECB meeting on monetary parameters, which ended a day earlier, and officials adjusted the interest and deposit indicators by 0.50%, bringing the target level to 3.5% and 3.0%, respectively, which fully meets market expectations. The accompanying comments of the regulator signaled that inflation will remain at a high level for a long period, and also confirmed the readiness to apply additional stimulus measures if price and financial stability face the challenge of new threats. However, the regulator refrained from forecasts on further steps to tighten monetary parameters, prioritizing the stability of the financial and banking sectors, which have been aggravated since the beginning of the week after official information about the bankruptcy of a number of American credit institutions. The increased concerns about the Swiss bank Credit Suisse Group were completely offset by the information that the bank was supported by the National Bank of Switzerland in the amount of 54.0 billion dollars, which partially reduced the panic on the rank, and also restored the issuer's position on the sites.
- Resistance levels: 0.8775, 0.8801, 0.8841, 0.8875.
- Support levels: 0.8750, 0.8720, 0.8692, 0.8660.
USDTRY: the elements are putting pressure on the Turkish economy
The USDTRY currency pair demonstrates a multidirectional trend, being in the area of 19.0000, developing growth. The losses of the Turkish lira to the "American" since March 2021 amounted to about 60%. Negative trends for the Turkish currency are reinforced by traders' fears about the consequences of natural disasters that occurred in February-March, against which more than 49.0 thousand people became victims, which was only intensified by floods that occurred in the provinces of southeastern Turkey. National economic indicators are under enormous pressure, which investors find confirmed in the statistics of the Ministry of Finance, which noted the borrowing of $ 2.25 billion through Eurobonds maturing until 2029, thus increasing the total volume of loans from international lenders to $ 5.0 billion.
- Resistance levels: 19.0789, 19.2000, 19.3000, 19.4000.
- Support levels: 18.8500, 18.7500, 18.6500, 18.5575.
The banking metal is quoted by rapid growth within the framework of the development of a stable trend for the near future, which has come since the first days of March. The asset is trading at 1930.00, holding the local maximum for February 2.
Last evening, gold showed a moderate decline, as the publication of the final minutes of the summit of ECB officials followed. According to expectations, the agency decided to increase the key percentage by 0.50% to the target value of 3.50%. Alarming news from the financial world about the crisis among the European and American banking sectors has increased analysts' fears that the European Central Bank will reduce the correction step by raising the cost of borrowing by only 0.25%. Meanwhile, the European regulator improved its own expectations regarding inflation dynamics at the end of this year to 5.3% from the previous 6.3%, and also revised the GDP estimates for the end of 2023 to 1.0% from 0.5%. Increasing pressure on the position of the banking metal is an increase in the rate of US treasury securities, the growth of which on 10-year bonds amounted to 3.871% from the previous 3.577%.
- Resistance levels: 1937.50, 1968.75, 2000.00.
- Support levels: 1875.00, 1843.75, 1812.50.