[EURUSD]

Important Levels to Watch for:

- Resistance line of 1.2137 and 1.21523.

- Support line of 1.20876 and 1.20723.

Commentary/ Reason:

- The euro advanced to $1.2098, added 0.16%, after touched a weekly low overnight.

- Appetite for the common currency curbed as the European Central Bank is widely expected to expand its stimulus measures to prop up the recession-hit currency bloc at its policy meeting later today.

- ECB President Christine Lagarde has made clear in recent weeks that a bigger Pandemic Emergency Purchase Programme (PEPP) and more subsidised long-term loans for banks will form the backbone of its policy measures.

- For now, the 19-country euro zone is facing a triple shock: a lingering second wave of the pandemic, the prospect of a hard Brexit and political stalemate over the EU’s 750 billion euro ($908 billion) recovery fund.

- Meanwhile, the concern at surging coronavirus cases in the U.S. tempered optimism about vaccinations and fiscal support for the U.S. economy and provided a weight for dollars.

- The U.S. Congress will vote this week on a stopgap funding bill to provide more time for lawmakers to reach a deal on a bigger COVID-19 relief package.

[USDCHF]

Important Levels to Watch for:

- Resistance line of 0.89158 and 0.89307.

- Support line of 0.88676 and 0.88527.

Commentary/ Reason:

- The dollar slipped 0.08% on Thursday stay at 0.8887 against the Swiss franc, not far from 0.8870, a 5-year low touched overnight.

[GBPUSD]

Important Levels to Watch for:

- Resistance line of 1.34142 and 1.34547.

- Support line of 1.32823 and 1.32427.

Commentary/ Reason:

- The British pound dropped to as low as $1.3311 and last stood at $1.3366, down 0.22% on the day. with development of Brexit being the main catalyst for the moves.

- The British pound took a breather after British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed they have until Sunday to take a “firm decision” about the future of trade talks.

- The negotiations end on Dec 31. If by then there is no agreement to protect around US$1 trillion in annual trade from tariffs and quotas, businesses on both sides would be hit hard.