[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21529 and 1.21771.

-        Support line of 1.20746 and 1.20503.

Commentary/ Reason:

  1. The euro slipped 0.18% against the dollar at $1.20983 after edging higher in the previous session.

  2. The euro drop comes amid reports the European Central Bank felt markets were under-pricing the risk of more rate cuts and as the ECB policymakers remain concerned about recent strength in the euro.

  3. ECB Governing Council member Rehn said that the ECB is "closely monitoring developments in the exchange rate, especially regarding the inflation outlook" and is ready to use all the tools necessary to stimulate inflation.

  4. In vaccine development, Europe's fight to secure COVID-19 vaccine supplies intensified as the EU warned drug companies such as AstraZeneca that it would use all legal means or even block exports unless they agreed to deliver shots as promised.

  5. German inflation roars back and hits 11-month high in January, while the U.S GDP increased at a 4.0% for Q4 in annualized rate.

  6. The U.S. Fed maintain its benchmark overnight interest rate near zero and pledged to continue injecting money into the economy through bond purchases.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89237 and 0.89451.

-        Support line of 0.88545 and 0.88331.

Commentary/ Reason:

  1. The dollar edged higher against the Swiss franc on Friday, rose 0.15% at 0.88991, not far from yesterday’s 1-week high at 0.89182.

  2. The U.S. Fed maintain its benchmark overnight interest rate near zero and pledged to continue injecting money into the economy through bond purchases.

  3. Switzerland's to hold referendum to decide on whether to impose lockdown or not to the country.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37603 and 1.38383.

-        Support line of 1.36043 and 1.35263.

Commentary/ Reason:

  1. Sterling slipped 0.10% to $1.3703 on Friday, reversing yesterday 0.24% uptick.

  2. The British pound weakened against the dollar as rekindled safe haven appetite in broader asset markets strengthened the U.S. dollar.

  3. The British pound also weighted down as the Prime Minister Boris Johnson is looking at toughening border quarantine rules, because of the risk of "vaccine-busting" coronavirus variants.

  4. Problems in some vaccine rollouts also weighed on sentiment.

GBPUSD