[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.17002 and 1.17239.
- Support line of 1.16236 and 1.15999.
Commentary/ Reason:
- The euro at $1.1664, after having hit a two-month low of $1.16265 on Thursday, before recovered and finished with modest gains.
- Yesterday tumble happened after the ECB took steps to spur bank lending and boost liquidity. Eurozone banks on Thursday took 174.5 billion euros ($203 billion) in targeted loans (TLTRO) provided by the ECB in ultra-cheap funding as the ECB gives banks funding to lend to businesses and consumers.
- The recovering gains happened after the positive news that the German Sep IFO business climate index rose +0.9 to a 7-month high of 93.4, although weaker than expectations of 93.8.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92957 and 0.93225.
- Support line of 0.92090 and 0.91823.
Commentary/ Reason:
- The dollar was quoted at 0.9269 Swiss franc, close to a 2-month trough against the dollar.
- The pair is on course to return to pre-COVID levels.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.27985 and 1.28337.
- Support line of 1.26848 and 1.26497.
Commentary/ Reason:
- Sterling was last trading at $1.2753, up 0.15%.
- The British pound managed to stay above Wednesday’s two-month lows after Britain’s government launched scaled-back job support for workers hit by a resurgent COVID-19 pandemic.