[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20927 and 1.21224.
- Support line of 1.19965 and 1.19668.
Commentary/ Reason:
Against the euro, the dollar stood at $1.20189, close to a 9-week high recorded overnight.
The dollar strengthened as the U.S. lead in the pace of vaccinations over other nations is starting to boost the prospects of an earlier economic recovery in the U.S, plus the optimism that U.S. President Joe Biden is to pass more fiscal stimulus.
The dollar faces another test tomorrow with the release of labour data, which will help confirm whether the world's largest economy has been able to shrug off a dip in growth toward the end of last year.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90221 and 0.90608.
- Support line of 0.89447 and 0.89060.
Commentary/ Reason:
The dollar extends its daily climb against the Swiss franc on Thursday, to 0.90009.
Sentiment for the dollar has improved recently as progress in the matters of coronavirus vaccinations, fiscal stimulus, and improving economic data forced some bearish investors to give up their short positions.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37153 and 1.37813.
- Support line of 1.35833 and 1.35173.
Commentary/ Reason:
The pound bought $1.36077, down 0.26% on the day, adding from a 0.17% decline in the previous session.
Traders are cautious awaiting the announcement from the Bank of England regarding its monetary policy.
The BoE is not expected to change interest rates or quantitative easing at its meeting on Thursday, but sterling will be closely watched as investors try to measure the likelihood of negative interest rates.
