EURTRY: RISES ARE SUPPRESSED IN THE PARITY

The calendar-adjusted domestic industrial production index increased by 11.0 percent in November 2020, above the expectation of an 8.3 percent increase compared to the same period of the previous year. It is seen that the seasonal and calendar-adjusted industrial production index of November exceeded the estimates with 1.3 percent compared to the previous month. If we look at the retail sales data, it increased by 2.2 percent on a monthly basis, while the annual data indicated an increase of 11.9 percent. Following these data, with the slight appreciation of TL assets, a slight withdrawal potential occurred in the EURTRY parity. 

If we look at the European-based developments, the European Medicines Agency announced that AstraZeneca has applied for approval for the Covid-19 vaccine. German Chancellor Merkel stated that the quarantine period in Germany can last until April. Industrial production in the Eurozone, on the other hand, increased by 0.2 percent in November, in line with the expectations. In the course of the statements from ECB President Lagarde, the emphasis on the fact that the economy is still intact despite the shutdowns drew attention. In addition, Lagarde added that financial and financial support is still needed.

In the technical view of the EURTRY parity, it can be expected that the decreases will accelerate the attacks towards the critical 8.90 level in case of closing below 9.0 level. It seems likely that decreases will increase the potential for decline within the frame of 8.80 support in below-level closures. However, 9.08 and 9.15 continue to be up-to-date as important areas of action in upward acceleration, which may come from 9.0 in the opposite scenario.