[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.22267 and 1.22591.
- Support line of 1.21217 and 1.20893.
Commentary/ Reason:
The euro eased marginally from its opening, to trade to $1.2146, and on track for its 3-day decline, with new monthly low recorded overnight.
The release of details of $1.9 trillion stimulus by President-elect Joe Biden’s failed to give the greenback jumping support, as the main points of the plan already reported heavily in the media.
EUR/USD was under pressure after the minutes of the Dec 9-10 yesterday in the ECB meeting showed that "all members" of the Governing Council agreed that additional monetary policy measures were necessary.
European yields were mostly being held in place with the region's stricter lockdowns, bolstering bets of more ECB bond buying, though inflation expectation gauges were creeping higher.
Governments across Europe announced tighter and longer coronavirus lockdowns on Wednesday due to a fast-spreading COVID variant first detected in Britain and as vaccinations are not expected to help much for another two to three months.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89146 and 0.89376.
- Support line of 0.88402 and 0.88172.
Commentary/ Reason:
The dollar added around 0.06% on Friday, to stay at 0.8884.
The prospect of new U.S. fiscal stimulus advancing the greenback, though the moves were hampered as question on how the U.S. will pay for it all were raised.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37165 and 1.37803.
- Support line of 1.35101 and 1.34463.
Commentary/ Reason:
The British pound was flat on Friday, trading at $1.3681 after touched a new weekly high overnight of $1.3708 and open the today’s market at $1.3685.
The pound was partly boosted by the Bank of England governor talking down the prospect of negative rates.
The ongoing pandemic is leading to prolonged lockdowns, with the UK reported a record 1,564 deaths and the U.S. 7-day average deaths rose to a record 3,366 on Wednesday.
Meanwhile for dollar, traders as of now are taking a little more of a wait-and-see approach, awaiting for more details on the latest U.S. relief package.
