[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18294 and 1.18553.

-        Support line of 1.17456 and 1.17197.

Commentary/ Reason:

  1. Against the euro, the dollar fell to $1.17760 but was still near its strongest level since November last year.

  2. The euro edged up as investors looked past rising coronavirus cases in Europe and focused on several economic data due later in the day, including the German business sentiment.

  3. EUR/USD recovered some of its losses the week’s losses on positive overnight Eurozone economic data. The German Apr GfK consumer confidence rose to a 4-month high, while the French Mar business confidence indicator rose to a 13-month high, stronger than expectations.

  4. The euro however still weighted as the 10-year German bund yield dropped to a 5-week low Thursday of -0.387%.

  5. The greenback has more room to rise against the euro, but its gains against other currencies in the past few weeks have been so rapid that some analysts are warning against chasing the dollar higher from current levels.

  6. Traders will also look to data on U.S. personal consumption due later Friday for further hints about the strength of the U.S. economy.

  7. Thursday’s U.S. economic data was bullish for the dollar. U.S. weekly initial unemployment claims fell to a 1-year low, while the Q4 GDP was revised upward to 4.3%, stronger than expectations of 4.1%.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.94164 and 0.94386.

-        Support line of 0.93444 and 0.93222.

Commentary/ Reason:

  1. The greenback traded at 0.94015 Swiss franc, climbing for fourth consecutive days.

  2. Demand for the safe-haven greenback is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.

  3. The dollar’s attraction was boosted as U.S. Federal Reserve officials appeared to tolerate rises in bond yields in recent weeks.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38003 and 1.38803.

-        Support line of 1.36403 and 1.35605.

Commentary/ Reason:

  1. The British pound was 0.21% higher at $1.37593, rebounding yesterday out of a 6-week trough.

  2. The pound gains traction as data due on Friday is forecasted to show a rebound in British retail sales. With consumers generally feeling more optimistic, there is a strong indication of a more prosperous period to come as the long-awaited recovery and life after lockdown begins.

GBPUSD