[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19827 and 1.19971.
- Support line of 1.19539 and 1.19395.
Commentary/ Reason:
- The euro rose to near a 3-month peaks and climbed 2.7% for the month so far.
- The pair last sat at $1.1969 on Monday.
- EUR/USD on Monday climbed to a 2-3/4 month high. EUR/USD moved higher on better-than-expected Eurozone economic data. Also, France's Q3 GDP was revised upward to +18.7% q/q from the previously reported +18.2% q/q, the strongest pace of expansion since the data began in 1949. In addition, the German Oct import price index rose +0.3% m/m, stronger than expectations of +0.1% m/m.
- However, the move may be subdued due to some negative factors. The concern is that European countries will have to maintain lockdowns for longer to slow the spread of COVID-19 as German infections have tripled since the start of October and the number of patients in intensive care in German hospitals climbed to a record on Thursday.
- Testimony from Fed chair Jerome Powell before Congress on Tuesday and Wednesday, as well as U.S. labour market data this week will be closely watched for clues as to the central bank’s thinking and the broad shape of the economy recovery.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90563 and 0.90731.
- Support line of 0.90227 and 0.90059.
Commentary/ Reason:
- The greenback continuing its slip since last week, recording a new more than 1-week low against the Swiss franc of 0.90311 on Monday.
- The pair last traded at 0.90314, down 0.13% on the day.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.33411 and 1.33510.
- Support line of 1.33089 and 1.32990.
Commentary/ Reason:
- Sterling stood at $1.3338, up 0.25%, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.
- The pound gains as U.S. dollar weakness offset some of the uncertainty about the outcome of Brexit talks. The head of the EU executive, the Commission, reported "genuine progress" though noted that the risk of Britain leaving the bloc without a deal on Dec 31 remained.
- The three main sticking points in the Brexit talks remain fish stocks, economic fair play for companies including state aid, and ways to settle trade disputes.
- Testimony from Fed chair Jerome Powell before Congress on Tuesday and Wednesday, as well as U.S. labour market data this week will be closely watched for clues as to the central bank’s thinking and the broad shape of the economy recovery.
