The pair has, in addition to the support of the rupture zone at 1.3620, a good support at 1.3580, ahead of key support located at 1.3550-40, the loss of this level would cede the initiative of the meeting sellers , they could seek additional cuts to 1.3520 and 1.3490-80. CAN THE BoE in the UK surprised comments from a member of the BoE’s Monetary Policy, Paul Tucker, said yesterday that short-term rates to 5.25% and the slope of the curve very moderate, monetary policy is beginning to become in restrictive territory, caused an upsurge of weakness in the pound. In contrast to the broad consensus that market and on the possible moves of the ECB, the BoE if the views are much more volatile, and does not rule out a rise of 50 basis points in May, but not touch the rates in the 5.50% ceiling. This explains the high volatility in GBP / USD (Pound against the dollar) has fallen hard early in the morning until the key support at 1.9855-45, whose penetration would have allowed additional cuts towards 1.9820 and then 1.9780- 75. However, the pair has rebounded strongly and has left behind the key resistance at 1.9955, which has continued to overcome the resistance 1.9990, associated with the EMA (200) 30 minutes, with possible expansion up to 2.0010. From here the following reference would be in 2.0060-70.
SNB DISSATISFIED WITH THE EVOLUTION OF ECONOMICS SWITZERLAND Switzerland, where we have known that advance economic indicator KOF has been published in April marked the 1.9 points in March (revised downwards to 1.84), below the 2 expected. Comments highlight the chairman of the central bank (SNB), Jean-Pierre Roth, who said that the economic situation in Switzerland is favorable, with domestic consumption as a driving force acting through the reduction of unemployment, and moderate price pressures. However, Roth warned that productive resources are at full capacity and depreciation of the Swiss franc may increase the risk of inflation, in which case the SNB will not hesitate to raise interest rates, currently at 2.25% – to ensure price stability over the medium term. USD / CHF (Swiss Franc against the U.S. dollar) has lost the support of key support located at 1.2050-45, as opening the door to cuts to 1.2025 and then to the recent minimum area 1.2000-1990. The couple has not gotten back above 1.2070 in order to search 1.2009-2100 resistance that protects the key resistance at 1.2125-30 located.