[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19701 and 1.19925.
- Support line of 1.18978 and 1.18755.
Commentary/ Reason:
The euro rose 0.1% to $1.19362 on Tuesday, though still languishing below $1.20 since March 5.
A lower T-note yields are negative for the dollar, with the 10-year T-note yield falling on Tuesday.
However, concern about a third COVID-19 wave in Europe is another bearish factor for EUR/USD. Europe’s vaccine roll-out has been hampered by the suspension of AstraZeneca shots in Germany, France and other nations amid concerns about possible serious side effects.
Investors are turning their focus to the Federal Reserve’s message Wednesday, which will include fresh economic projections. A continued lack of concern about the recent rise in long-term borrowing costs could pave the way for higher yields, boost inflation trades and impact the rotation from growth to value stocks.
At the end of Fed's 2-day meeting on Wednesday, policymakers are expected to forecast that the US economy will grow in 2021 at its fastest rate in decades, while reiterating their dovish stance for the foreseeable future.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93363 and 0.93898.
- Support line of 0.92293 and 0.91758.
Commentary/ Reason:
The Swiss franc advanced against the U.S. dollar for second consecutive day, to trade at 0.9265, a 0.10% lower.
Traders now are turning their focus to the extensive policy review by the U.S. FOMC, that will kick off its 2-day meeting today, with expectations that the central bank will revise its economy forecast following the $1.9 trillion fiscal stimulus aid.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39897 and 1.40386.
- Support line of 1.38316 and 1.37827.
Commentary/ Reason:
Sterling fell about 0.15% to $1.38677 ahead of a Bank of England meeting on Thursday and the U.S. Federal Open Market Committee (FOMC) meeting on March 16 and 17.
The BoE is expected to keep its benchmark interest rate at its historic low of 0.1% and its bond-buying programme unchanged, the Fed policymakers are expected to forecast that the U.S. economy will grow in 2021 at its fastest rate in decades, while reiterating their dovish stance for the foreseeable future.
