GBPUSD TOPS 1.40, HIGHEST IN MORE THAN 30 MONTHS
In the UK, the consumer price index contracted by 0.2 percent, while retail sales pointed to a weakness beyond expectations with an 8.2 percent contraction. It is seen that industry orders in the UK contracted less than the previous month with minus 24. While the UK February manufacturing PMI was above expectations with 54.9, it is seen that the Service PMI figure recovered with 49.7. In the UK, a decision to lift the restrictions is also expected on February 22. Especially, bars, cafes and restaurants are expected to return to normal in May and July.
On the US side, while the positive macroeconomic data announced throughout the week increased the lucrative image on the dollar side. In the US, the Philadelphia Fed Manufacturing Index also declined to 23.1 in February, while construction permits indicate an increase above expectations. As another development in the monitoring of the markets, Nancy Pelosi stated that the Parliament aims to pass the $ 1.9 trillion stimulus package by the end of next week, while US Treasury Secretary Yellen expressed that they hope to see progress in the enactment of the economic support package in the next week.
After all these developments, the parity, which carried its rise to the level of 1.40, has gained a considerable acceleration this morning. Especially with the break of 1.40 resistance, the pair's gains can reach 1.41 and 1.42 resistance levels. However, in the return from a possible 1.40 level, 1.3940 and 1.3855 support levels will be important areas of action.