EURTRY SETTLES ON 6,55 LEVEL
While the Euro Area industrial production in November increased by 0.2 percent compared to the previous month, we see that the data was below expectations. Compared to November 2018, it is seen that the data decreased by 1.5 percent. The highest increase in industrial production on a monthly basis among EU countries was realized in Lithuania with 3 percent, Malta with 2.6 percent, Poland and Sweden with 1.6 percent. The country that showed the biggest decrease was Denmark with 4.7 percent.
Commerzbank Senior Economist Peter Dixon mentioned that the Eurozone economy was going through a difficult process due to the weakness in the global environment. It was also important that Dixon stated that the interest rate cut from the Bank of England was a matter of time. Anticipating that the economy will grow by 1 percent or less, Dixon also underlined that he did not see a recession on the horizon.
Growth expectations for the last quarter of 2019 in the Eurozone were revised up to 0.3 percent. In the first two quarters of 2020, the region's economy is expected to grow by 0.3 percent. The report, which included risks to the economic outlook, emphasized that the risks related to the Euro Area increased, as well as the strikes against the pension reform prepared by the President Emmanuel Macron administration in France and the increase in the tension between the US and Iran were also important factors.
If we look at the domestic pricing, after the industrial production data that came below the expectations yesterday, while the tension on the Turkish Lira was formed, the pair settled as important support on the 50-day exponential moving average level of 6.51. It is seen that recent developments in Libya have weakened the Turkish Lira side. Thus, it is observed that the interest rate cut expectations and the slight upward trend for the CBRT meeting, which will be held tomorrow, are limited. Attacks for the 6.60 resistance may occur in the pair by maintaining the appearance above the 6.55 level. In closing above this level, we follow the resistance of 6.65.