[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18083 and 1.18433.
- Support line of 1.17383 and 1.17033.
Commentary/ Reason:
The euro touched a new 4-1/2-month low of $1.17605 earlier today, and on course to fall by the most this month since mid-2019.
The pair steadied, to last sat at $1.17649.
Tougher coronavirus curbs in France and Germany have dimmed the short-term outlook for the European economy, while a widening spread between U.S. and German bond yields are adding pressure on the single currency.
Eurozone government bond yields rose as relief from the refloating of the container ship blocking the Suez Canal prompted some selling of safe-haven assets. But rising COVID-19 cases kept investors broadly cautious about Europe.
German yields rose on Friday and continued to climb on Monday and Tuesday. The 10-year bund yield rose 0.9 basis point to a six-day high.
Longer-dated U.S. Treasury yields meanwhile rose as President Biden will unveil the framework for a large infrastructure-and-jobs program on Wednesday, that could mean faster economic growth and a dramatic increase in Treasury bond issuance.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.94092 and 0.94278.
- Support line of 0.93720 and 0.93534.
Commentary/ Reason:
The greenback traded higher at 0.93947 Swiss franc, on optimism over the U.S. economy, with the U.S. President Joe Biden is expected to put some detail in his infrastructure spending plans on Wednesday.
Demand for the safe-haven greenback also is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38382 and 1.39075.
- Support line of 1.36985 and 1.36492.
Commentary/ Reason:
The sterling advanced against the dollar, rose 0.13% to trade at $1.37750.
The pound was strengthened as the lockdowns in the country had been lifted, prompting an optimism. The country’s speedy vaccination rollout also helped lifted the positive sentiment.
Next, besides infection and inoculation counts, investors are now looking to PMI figures due midweek and for some details of U.S. President Joe Biden’s infrastructure spending plan.
