[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21902 and 1.22209.
- Support line of 1.20907 and 1.20599.
Commentary/ Reason:
The EUR/USD traded flat, though not far from its 1-month high touched yesterday. The pair last traded at $1.21479 on Wednesday.
EUR/USD fell back as Germany's decided to extend some its travel restrictions until at least March 3.
The dollar, meanwhile, were weighted as the central bank vowed to keep monetary policy loose for a long time, giving investors enough confidence to seek out riskier assets. Dollar slipped after US Federal Reserve Chair Jerome Powell downplayed concerns over inflationary pressures and reiterated continued monetary support.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90888 and 0.91325.
- Support line of 0.89476 and 0.89039.
Commentary/ Reason:
The dollar hit an almost 3-month high against the Swiss franc on Wednesday, although overall sentiment was still negative on the greenback.
The dollar bought at 0.9066 against the Swiss franc.
U.S. Federal Reserve Chair Jerome Powell reiterated on Tuesday that interest rates will remain low and the Fed will keep buying bonds to support the U.S. economy, which many traders say is a long-term negative factor for the dollar.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.41660 and 1.42350.
- Support line of 1.40280 and 1.39590.
Commentary/ Reason:
The British pound extends the climb, rose to $1.4159, the highest since April 2018.
The outlook for sterling has brightened as investors cheer Britain's rapid coronavirus vaccination programme and its plans to ease lockdown restrictions on economic activity.
GBP/USD strengthened as investors cheer Britain's rapid coronavirus vaccination programme and its plans to ease lockdown restrictions on economic activity. UK Prime Minister Johnson said he is "very optimistic" that UK restrictions on social contact will end in June. Airline bookings in the UK surged late Monday after Prime Minister Johnson said that international travel trips might restart as soon as May 17. EasyJet Plc said ticket sales more than quadrupled Monday, and tour operator TUI AG said that holiday booking throughout Europe surged sixfold overnight.
Higher gilt yields also supported gains in GBP/USD after the 10-year gilt yield jumped to a new 11-month high.
Diminished Brexit uncertainty also lifted the pound.