[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21373 and 1.21692.
- Support line of 1.20341 and 1.20022.
Commentary/ Reason:
The euro edged up 0.14% to $1.20835 on Tuesday after dropping 0.64% on Monday, its most since Jan. 15.
The euro sank to 2-1/2 weeks low on Monday after data showed German retail sales plunged by an unexpected 9.6% in December after tighter lockdowns last year to curb the spread of COVID-19 choked consumer spending in Europe's largest economy, with the continent still struggling with vaccine rollouts.
EUR/USD also retreated on dovish ECB comments. ECB Executive Board member Schnable said Monday that the ECB "continues to be worried about inflation being too low rather than too high," and that "raising interest rates in the current situation would have disastrous effects."
Meanwhile a positive factor for EUR/USD was an upward revision to the Eurozone Jan Markit manufacturing PMI by to 54.8 from the previously reported 54.7.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89938 and 0.90224.
- Support line of 0.89011 and 0.88724.
Commentary/ Reason:
The dollar extends its daily climb against the Swiss franc on Tuesday, to 0.89668.
The U.S. dollar bounced to a 2-week high overnight on weakness in the Swiss franc on the view that the U.S has an advantage in growing its economy and vaccinating its population against COVID-19.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37603 and 1.38000.
- Support line of 1.36317 and 1.35920.
Commentary/ Reason:
Sterling rose 0.15% to $1.3680 on Tuesday, reversing yesterday 0.31% slip.
The uptick came as the UK government announced that it had applied to join the Asia-Pacific trade bloc, the TPP11.
The positive news however hampered as the Britain factory activity slowed in January with manufacturers facing the twin headwinds of COVID-19 and Britain's exit from the EU.
Problems in some vaccine rollouts also weighed on sentiment.
