[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21605 and 1.21976.
- Support line of 1.20863 and 1.20492.
Commentary/ Reason:
The euro rallied to near its highest since Feb. 1. to $1.21222 on Thursday from its low of $1.1952 touched last Friday.
While a weaker dollar boosted EUR/USD, the gains were limited from dovish ECB comments on Wednesday. ECB President Lagarde said, "we're very far away" from the ECB's current inflation target of just under 2%, and the ECB must continue with its accommodative monetary policy.
The dollar fell, weighed down by U.S. inflation data. The softer-than-expected U.S. inflation and another Federal Reserve promise to keep interest rates low reinforced expectations of small returns from the reserve currency.
Later Thursday, European Commission economic forecasts are due, as are U.S. labour market figures, with investors looking to the data to gauge the relative progress in recovery.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89353 and 0.89532.
- Support line of 0.88772 and 0.88592.
Commentary/ Reason:
The dollar little changed against the Swiss franc on Thursday, to settle at 0.89017, not far from overnight’s weekly low of 0.88900.
The dollar faltered as traders looking ahead to an expected recovery from the COVID-19 pandemic this year, driven by massive fiscal and monetary stimulus, making riskier currencies to be more favourable, on top of yesterday’s dovish comment from U.S. Fed.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38725 and 1.38973.
- Support line of 1.37922 and 1.37673.
Commentary/ Reason:
The British pound added 0.13% against the dollar to $1.38486 on Thursday.
Sterling was boosted by receding expectations for negative interest rates in Britain, sat just shy of Wednesday's nearly 3-year peak of $1.38656.
While the Federal Reserve Chairman Jerome Powell, who reassured investors that interest rates will remain low for some time to spur the economy and jobs growth but provided no new insights on monetary policy.
The pound also moving higher on the prospects that the UK economy may be able to recover sooner than other countries as the pace of its vaccinations quickens. The UK has vaccinated 25% of its adult population, and the pace of vaccinations is accelerating as the UK is now vaccinating 10% of its adults every 10 days.
