[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21630 and 1.21897.
- Support line of 1.20764 and 1.20497.
Commentary/ Reason:
The euro stood at $1.2142, up 0.11% and off Monday’s 6-weeks low of $1.2053.
EUR/USD drawing support from a better-than-expected Eurozone economic data. The ZEW investor sentiment survey rose to a 4-month high and Eurozone Nov construction output noted its biggest increase in 3 months, while the Italian government surviving a confidence vote.
Meanwhile, the dollar drops in anticipation of more U.S. stimulus spending. Yellen told the Senate Finance Committee that the government must "act big" with its next coronavirus relief package.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89212 and 0.89436.
- Support line of 0.88488 and 0.88264.
Commentary/ Reason:
The dollar dipped fractionally on Wednesday, shedding 0.05%, to stay at 0.88765.
Dollar was weakened as the Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package before Senate lawmakers to ride out the world's largest economy from a pandemic-driven slump, where she also reaffirmed a commitment to a market-determined exchange rate.
Switzerland's to hold referendum to decide on whether to impose lockdown or not to the country.
[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 pound sterling extends its 3-day climb against the dollar, to stay at $1.3651 on Wednesday, rose 0.22% on the day.
Sterling found support from the Bank of England’s chief economist’s prediction that Britain’s economy begins to “recover at a rate of knots” in the second half of the year.
Meanwhile, the dollar drops after the Treasury Secretary nominee Janet Yellen calls for big spending and stimulus on Tuesday.
Investors now watching out for U.S. President-elect Biden’s inauguration speech on Wednesday for details on the country’s $1.9 trillion aid package.
