[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20420 and 1.20752.
- Support line of 1.19344 and 1.19012.
Commentary/ Reason:
The euro changed hands at $1.19560, having hit a 2-month low of $1.19524 earlier today.
EUR/USD on Friday tumbled to a fresh 2-month low weighed on a weaker-than-expected Eurozone economic data. Eurozone Dec retail sales rose but weaker than expectations, while the German Jan Markit construction PMI fell for eleventh consecutive month the index has remained below 50.0 and in contraction.
Meanwhile, 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 is to face another test later today 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 0.90634 and 0.90893.
- Support line of 0.89793 and 0.89533.
Commentary/ Reason:
The dollar extends its daily climb against the Swiss franc on Friday, to 0.90428.
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 British pound stood at $1.36743 not far from its 2 1/2-year peak of $1.3759 hit late last month.
The pound jumped as investors heavily scaled back bets that the BoE would implement sub-zero rates this year. The currency turned positive after the bank kept interest rates unchanged and indicated it would not take that position for at least six months, if at all.
