[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20086 and 1.20376.
- Support line of 1.19146 and 1.18856.
Commentary/ Reason:
The euro pulled back to break its 3-day advance against the dollar.
The euro shed 0.15% against the dollar and was quoted at $1.19657.
The common currency fell after the European Central Bank said it was ready to accelerate money-printing to keep eurozone yields down.
Bund yields tumbled on the statement. The German 10-year yield was last at -0.331% after hitting a 3-week low of -0.367%.
The EUR/USD however found support after the ECB, on Thursday raised its Eurozone 2021 GDP estimate to 4.0% from previous forecast of 3.9% and raised its 2021 inflation estimate to 1.5% from 1.0%.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93115 and 0.93418.
- Support line of 0.92135 and 0.91823.
Commentary/ Reason:
Against the safe-harbour Swiss franc, the greenback bought 0.9264 franc, 0.36% higher, though still less to cover 0.6% slump recorded yesterday.
The bout of higher U.S. bond yields undermined low-yielding currencies, including the safe-haven Swiss franc.
Fiscal stimulus also fuelled market expectations for a rapid recovery, with President Joe Biden finalized the $1.9 trillion spending package.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.40161 and 1.40470.
- Support line of 1.39159 and 1.38850.
Commentary/ Reason:
The British pound touched its new 1-week high earlier Friday, before eased 0.1% to trade at $1.3978.
Strength in stock index futures on undercut the liquidity demand for the dollar. The dollar also weakened against the sterling after benign data on U.S. consumer prices and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
UK’s GPD figures and other economic indicators on Friday is awaited to direct the pound’s path ahead.
