[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19373 and 1.19777.
- Support line of 1.18064 and 1.17659.
Commentary/ Reason:
The euro slipped to it 2-week low, trading at $1.18421, and heading toward a 4-month trough below $1.18357.
The euro was lower versus the U.S. dollar at opening Wednesday amid the resurgence in COVID-19 cases globally which has dented investor sentiment. Germany, France and Italy have extended and widened lockdowns and urged its citizens to stay at home over the Easter holiday as the cases are spiking.
An easing of the pandemic in the U.S. is hawkish for Fed policy and supportive for the dollar as the 7-day average of new U.S. Covid infections fell to a 5-month low.
Worries over the pace of the pandemic recovery were meanwhile heightened after a U.S. health agency said the AstraZeneca Plc vaccine may have included outdated information in its data.
The dollar was strengthened as investors ran for cover with the U.S. bonds and U.S. dollar act as save harbour to ride the third wave of COVID-19 storm.
The dollar also found support on reduced inflation concerns after Fed Chair Powell and Treasury Secretary Yellen testimonial speeches.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93803 and 0.94263.
- Support line of 0.92316 and 0.91857.
Commentary/ Reason:
A decline in risk appetite weighed on the Swiss franc. The greenback rose another 0.05% today on top of 1.15% overnight, to advance to its 2-week high, last stood at 0.93445 franc.
The dollar’s attraction was boosted as U.S. Federal Reserve officials appeared to tolerate rises in bond yields in recent weeks.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38585 and 1.39123.
- Support line of 1.36842 and 1.36303.
Commentary/ Reason:
The British pound traded at $1.37095, sinking 0.25% on the day.
A speedy rollout of COVID-19 vaccines and an easing of the pandemic in the U.S, on top of the Biden Administration’s $1.9 trillion stimulus are seen lifting growth, driving up bond yields and drawing investors.
The flight to safety also received an additional nudge when Treasury Secretary Yellen that testifying to the House Financial Services Committee, told lawmakers that future tax hikes will be needed to pay for infrastructure projects and other public investments. Fed Chair Powell meanwhile, reiterated that an expected near-term spike in inflation will be transitory.
Britain's jobless rate unexpectedly fell in the three months to January, a change that partly reflected people giving up their job hunt as lockdown measures tightened at the start of the year, official figures showed on Tuesday.
