[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20044 and 1.20356.
- Support line of 1.19036 and 1.18724.
Commentary/ Reason:
- The euro rose 0.28% on the day to 1.1957.
- Overnight, the euro rose to a 3-month peak, with 2.7% gains for the month.
- Investors are heavily short on dollars as optimism about promising vaccine trials drives buying of riskier currencies and higher yielding assets outside the U.S.
- The moves of euro also influenced on high hopes that the EU will soon pass pandemic fiscal stimulus.
- Testimony from Fed chair Jerome Powell before Congress on Tuesday and Wednesday, as well as U.S. labour market data this week will be closely watched for clues as to the central bank’s thinking and the broad shape of the economy recovery.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91119 and 0.91425.
- Support line of 0.90131 and 0.89825.
Commentary/ Reason:
- The dollar last traded at 0.9071 against the Swiss franc, down 0.12% on the day.
- The dollars were sold as optimism about promising vaccine trials drives buying of riskier currencies and higher yielding assets outside the U.S.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.33926 and 1.34243.
- Support line of 1.32900 and 1.32583.
Commentary/ Reason:
- Sterling stood at $1.3363, up 0.35% on the day, having climbed steadily, as investors remain hopeful that a Brexit deal would be brokered before the year’s end.
- Talks between EU chief negotiator Michel Barnier and British chief negotiator David Frost are ongoing, and the EU team are expected to stay in London for two or three more days.
- The three main sticking points in the Brexit talks remain fish stocks, economic fair play for companies including state aid, and ways to settle trade disputes.
- Testimony from Fed chair Jerome Powell before Congress on Tuesday and Wednesday, as well as U.S. labour market data this week will be closely watched for clues as to the central bank’s thinking and the broad shape of the economy recovery.
