[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21630 and 1.21897.
- Support line of 1.20764 and 1.20497.
Commentary/ Reason:
The euro gained more than 0.2%, reversing a similar decline from the previous session, to trade at $1.2130.
The euro drew support from an investor sentiment survey that beat forecasts and the Italian government's surviving a confidence vote.
Long liquidation pressures however, weighed on EUR/USD ahead of Thursday's ECB meeting and press conference from ECB President Lagarde.
EU leaders will address the coronavirus pandemic’s mounting challenges, from containing more infectious variants to the threat of border closures and the slow roll-out of vaccines across the bloc. The meeting begins at 1700 GMT.
Meanwhile, the dollar drops in anticipation of more U.S. stimulus spending. Yellen told the Senate Finance Committee that the government must "act big" with its next coronavirus relief package.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89212 and 0.89436.
- Support line of 0.88488 and 0.88264.
Commentary/ Reason:
The dollar dipped on Thursday against the Swiss franc, shedding 0.08%, to stay at 0.88860.
Positioning data showed investors are overwhelmingly short on the dollar, betting budget and current account deficits will weigh on the greenback.
Dollar weakened as the Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package before Senate lawmakers to ride out the world's largest economy from a pandemic-driven slump, where she also reaffirmed a commitment to a market-determined exchange rate.
Switzerland's to hold referendum to decide on whether to impose lockdown or not to the country.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37289 and 1.37660.
- Support line of 1.36091 and 1.35720.
Commentary/ Reason:
The pound sterling extends its 4-day climb against the dollar, to stay at $1.3680 on Thursday, rose 0.23% on the day.
Sterling found support from the Bank of England’s chief economist’s prediction that Britain’s economy begins to “recover at a rate of knots” in the second half of the year.
The pound also rallies on a better-than-expected UK economic data. The UK Nov house price index rose at the fastest pace of increase in 4-1/2 years. Its consumer prices are hawkish for BoE policy and supportive for GBP/USD as the data showed that its Dec CPI rose 0.6%, and the Dec core CPI rose 1.4%.
Meanwhile, the dollar drops after the Treasury Secretary nominee Janet Yellen calls for big spending and stimulus on Tuesday.
