[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.22147 and 1.22809.
- Support line of 1.20823 and 1.20161.
Commentary/ Reason:
The euro up 0.11% to touch a weekly high against the dollar to $1.2174 on Friday, while climbed around 0.8% for the week.
The euro rose gains support against the US dollar after the ECB's announcement.
The ECB, which kept interest rates steady at -0.5%, on Thursday, also reaffirmed a pledge to keep borrowing costs at record lows to help the eurozone economy withstand the impact of the coronavirus pandemic.
Riskier commodity currencies also supported after Joe Biden, who has laid out plans for a US$1.9 trillion pandemic relief package, was sworn in as president.
The optimism that the new U.S. administration's massive stimulus package will bolster growth sapped demand for safe-haven currencies.
Meanwhile, Germany extends a hard lockdown by 2 weeks until mid-February.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89013 and 0.89247.
- Support line of 0.88255 and 0.88021.
Commentary/ Reason:
The dollar dipped on Friday against the Swiss franc, to 0.88482 to touch a new weekly low.
Investors are overwhelmingly short on the dollar; betting budget and current account deficits will weigh on the greenback.
The optimism that the new U.S. administration's massive stimulus package will bolster growth sapped demand for safe-haven currencies.
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 1.37993 and 1.38883.
- Support line of 1.36213 and 1.35323.
Commentary/ Reason:
Sterling retreated 0.15% to $1.37092 on Friday on profit-taking after rose to a 2-1/2 year high of $1.37452 overnight.
The pair is awaiting on the economic data later today. In addition to the UK retail sales data, the GBP/USD will react to the country’s public debt data and the flash manufacturing PMI numbers from Markit.
