[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21050 and 1.21338.
- Support line of 1.20121 and 1.19834.
Commentary/ Reason:
The euro dipped to $1.2020, extending the losses to third straight day, and at its lowest level in two weeks.
Although stock market soared, demand for riskier assets did not slug the dollar, which usually regarded as a safe-haven currency, as investors bet on fast growth and inflation in the U.S.
The common currency was under pressure as top officials from the European Central Bank sounded alarm over rises in bond yields. ECB Governing Council member Villeroy de Galhau undercut bund yields when he said that the ECB "can and must react" against any unwarranted rise in bond yields. The 10-year German bund yield fell -7.4 bp to -0.334%, falling back from last Friday's 11-month high of -0.202%. President Christine Lagarde also said on Monday the ECB will prevent a premature increase in borrowing costs for firms and households.
Slack consumer price pressures in Germany also are dovish for ECB policy and negative for EUR/USD after German Feb CPI rose 1.6, below the ECB's 2.0% inflation target.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91832 and 0.92196.
- Support line of 0.654 and 0.90290.
Commentary/ Reason:
The dollar strengthened to a near 4-month high on Tuesday, and last stood at 0.90594.
The dollar climbs as the U.S. economic recovery is seen on a firmer ground, bolstered by prospects of a $1.9 trillion relief package from the Biden Administration and successful rollouts of COVID-19 vaccinations.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.40400 and 1.41370.
- Support line of 1.38460 and 1.37490.
Commentary/ Reason:
The British pound weakened to a 1-week low against the dollar on Tuesday, to $1.3870, down 0.40% on the day.
Higher T-note yields supported the dollar, along with weakness in the euro and yen.
An easing of the COVID-19 pandemic in the U.S. has bolstered optimism that lockdowns and restrictions on the U.S. economy will soon be lifted, which is giving stocks and the dollar a boost. New daily U.S. COVID-19 infections meanwhile, fell to a 4-1/2 month low on Sunday.
UK government also does not plan to change its lockdown rules despite several cases of new virus variant.
Traders bet as the British finance minister Rishi Sunak is expected to extend the jobs support program until at least May in his budget, expected to be presented later this week.
