[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19308 and 1.19653.
- Support line of 1.18190 and 1.17845.
Commentary/ Reason:
The euro scaled back higher after slumped to more than 3-month low earlier today. The common currency last stood at $1.18577.
The EUR/USD slid on dollar strength and bearish Eurozone economic data. German Jan industrial production fell weaker than expectations to note the biggest decline in 9 months.
The dollar garnered support from a higher T-note yields, and as the Senate’s passed on Saturday of the Biden administration’s $1.9 trillion pandemic relief package.
All eyes will now be on the U.S. Federal Reserve’s two-day meeting next week, although expectations are low that the central bank will announce major policy changes after Chair Jerome Powell last week did not express concern about the rise in bond yields.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93891 and 0.94189.
- Support line of 0.92927 and 0.92629.
Commentary/ Reason:
The safe-haven Swiss franc softened to 0.9369 per dollar, its lowest level since July, to trade at 0.93613, extending the losses for the fifth straight day.
The bout of higher U.S. bond yields undermined low-yielding currencies, including the safe-haven Swiss franc.
Fiscal stimulus also fuelled market expectations for a rapid recovery, with President Joe Biden close to passing a $1.9 trillion spending package.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39017 and 1.39627.
- Support line of 1.37797 and 1.37187.
Commentary/ Reason:
The British pound inched up 0.23% to $1.3834, to snatch its 3-day decline against the dollar.
The U.S. dollar had track higher with rising yields more recently and that trend may continue as the outlook for the U.S. economy brightens. Economic data in the U.S. has been consistently beating expectations to the upsides.
UK’s GPD figures and other economic indicators on Friday is awaited to direct the pound’s path ahead.
