[EURUSD]

Important Levels to Watch for:

- Resistance line of 1.22318 and 1.22656.

- Support line of 1.21224 and 1.20886.

Commentary/ Reason:

- EUR/USD on Thursday rallied to a new 2-1/2 year high. The euro traded at $1.2225, the strongest since April 2018.

- Stronger-than-expected economic data on Wednesday fueled gains in the euro after the Eurozone December Markit manufacturing, composite, and services PMI rose stronger than expectations. In addition, higher German bund yields benefit EUR/USD as the 10-year German bund yield rose to a 1-1/2 week high.

- The dollar initially rose on the Fed's announcement, but soon slipped.

- The Federal Reserve on Wednesday vowed to keep funnelling cash into financial markets until the U.S. economic recovery is secure, a promise of long-term help that fell short of some investors’ hopes of an immediate move to shore up a recent pandemic-related slide.

- The markets were also cheered by the possibility of a Brexit trade deal, and An ECB’s decision to let euro zone banks start paying dividends again, if they have enough capital.

[USDCHF]

Important Levels to Watch for:

- Resistance line of 0.89005 and 0.89282.

- Support line of 0.88111 and 0.87834.

Commentary/ Reason:

- The dollar down on Thursday against the Swiss franc, to stay at 0.8843, not far from 0.88250, a more than 2-year low touched overnight.

- The dollar initially rose on the Fed's meeting announcement, but soon went down 0.06% on the day.

- A U.S. Treasury report on the forex practices of Switzerland as currency manipulators.

[GBPUSD]

Important Levels to Watch for:

- Resistance line of 1.35711 and 1.36117.

- Support line of 1.34203 and 1.33737.

Commentary/ Reason:

- The pound risen 0.21% to $1.3535 on the day.  The currency touched a 3-year high against the greenback on the previous session at $1.3553.

- Positive soundings from the European Union on Brexit talks helped lift the British pound to its highest level against the dollar since May 2018.

- Regarding the Brexit negotiation progress, the European Commission President Ursula von der Leyen said there was progress on the trade deal and the next few days would be critical, added that a deal was nearer, although success wasn’t guaranteed.

- The elusive trade agreement will 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.

- Britain and the United States on Wednesday signed an agreement on customs processes to keep trade flowing smoothly between the two countries when Britain fully leaves the orbit of the European Union at the end of the year.