[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19892 and 1.20217.
- Support line of 1.18843 and 1.18519.
Commentary/ Reason:
The euro nudged up slightly against the dollar, to $1.19172, reversing Thursday’s 0.5% tumble.
The euro slipped overnight, as stronger dollar and a higher T-note yields weighed, along with comments from ECB President, who reiterated the ECB’s pledge to speed up the pace of its bond purchases. The ECB may need some time before the recently agreed acceleration in the pace of money printing, ECB President Christine Lagarde said on Thursday.
The euro also weighed on concern about a third COVID-19 wave in Europe. Several large European countries have reimposed lockdowns as new infections increase again, while vaccination programs slow because of concerns about side effects of the AstraZeneca vaccine, which was being widely distributed in Europe.
Meanwhile, the dollar progress was halted on mixed U.S. economic data and Fed's dovish interest rate stance. U.S. weekly initial unemployment claims unexpectedly rose to show a weaker labor market in the country.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93214 and 0.93570.
- Support line of 0.92059 and 0.91702.
Commentary/ Reason:
The dollar edged up against the Swiss franc as improving risk appetite hurt traditional safe-harbour currencies. The greenback rose to stood at 0.92717 franc.
The 10-year T-note yield on Thursday climbed to a new 13-month high of 1.753%, giving the dollar a boost on improved interest rate differentials.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.40058 and 1.40603.
- Support line of 1.38748 and 1.38343.
Commentary/ Reason:
The pound extents Thursday’s losses to open lower against the U.S. dollar today amid spike in the Treasury yields and BoE monetary policy. Last at $1.39260.
The greenback has been supported by a paring of bets for its decline, with speculators cutting net short positions.
On Bank of England rate decision Thursday, the BoE warned the outlook for Britain’s recovery remained unclear, dampening some speculation the bank would signal a more confident outlook.
The Bank of England said Britain's economic recovery was gathering pace, but policymakers were split over the prospects for longer-term improvement, dampening speculation about a reversal of stimulus.
