[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19840 and 1.20208.
- Support line of 1.18648 and 1.18280.
Commentary/ Reason:
The euro slipped 0.15% to $1.1933 on Monday, parted way from last week's high of $1.1990.
The euro was undercut by concern that the spread of a third wave of Covid throughout Europe could force governments to tighten restrictions and extend lockdowns. Market participants also have grown wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to a jump in inflation as expanding vaccination campaigns bring an end to lockdowns.
A higher T-note yields meanwhile were supportive for the dollar as the 10-year T-note yield climbed to a 13-month high Friday.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93554 and 0.93897.
- Support line of 0.92440 and 0.92097.
Commentary/ Reason:
Against the safe-harbor Swiss franc, the greenback bought 0.9308 franc, 0.16% higher, extending the gains for two straight day.
The Swiss franc retreated against the U.S. dollar today as traders bet for hawkish for Fed policy on March 16 and 17 FOMC meeting.
The bout of higher U.S. bond yields undermined low-yielding currencies, including the safe-haven Swiss franc. Fiscal stimulus also fueled market expectations for a rapid recovery, with President Joe Biden finalized the $1.9 trillion spending package.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39897 and 1.40386.
- Support line of 1.38316 and 1.37827.
Commentary/ Reason:
The British pound slipped 0.04% to $1.39047.
The greenback has been supported by a paring of bets for its decline, with speculators cutting net short positions to the lowest since mid-November in the week ended March 9.
A better-than-forecasted UK GDP reported Friday also help the sterling to hold the line.
Traders awaited as the focus this week will be on the U.S. Federal Reserve’s 2-day policy meeting. Benchmark 10-year Treasury yields were at 1.6320% on Monday, close to Friday’s top of 1.6420%.
