ANALYSIS
NQ100 Finds Support from PPIApr 14
GBPUSD Optimism Continues in Parity
In the preliminary reading data released by the Office for National Statistics (ONS) today, the UK's gross domestic product (GDP) grew by 2.4% in the third quarter, against the expectations of 2.1%, supporting the pound. Thus, it is possible to say that the recession risks in the country's economy are slightly reduced. In addition, the Bank of England (BoE) Governor Bailey's projection that they are likely to raise interest rates in the coming months and the news that reflected on the markets that British Prime Minister Rishi Sunak is considering increasing the upper limit in income tax plays a determinant role in the recovery of the pound. On the other hand, the decline in the US CPI data to 7.7% on an annual basis in October creates expectations that the FED may raise interest rates in a softer way, while the declines in the dollar also support the pound. On the technical side, GBPUSD parity, which gained momentum in favor of the pound by overcoming the strong resistance zone, may bring the resistance of 1.1845, which will be the highest level of 2.5 months, to the agenda if it permanently exceeds the 1.1800 level. In possible retreats, 1.1700 and 1.1655 supports can be followed.
