[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21605 and 1.21976.
- Support line of 1.20863 and 1.20492.
Commentary/ Reason:
The euro rose 0.17% on Monday to stay at $1.21215 after climbing 0.6% last week.
A positive factor for EUR/USD is reduced political risks in Italy after the 10-year Italian bond yield tumbled to a record low Friday of 0.422%. Italian government bond yields fell after Italy's Five Star Movement, the country's biggest political party in parliament, voted to back Prime Minister-elect Draghi as he forms a new government, giving him a parliamentary majority.
While the U.S. economic data was negative for the dollar after the University of Michigan U.S. Feb consumer sentiment unexpectedly fall weaker than expectations.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89353 and 0.89532.
- Support line of 0.88772 and 0.88592.
Commentary/ Reason:
The dollar retreated against the Swiss franc on Monday, trading at 0.89069, not far from Wednesday’s weekly low of 0.88900.
The dollar faltered as traders looking ahead to an expected recovery from the COVID-19 pandemic this year, driven by massive fiscal and monetary stimulus, making riskier currencies to be more favourable.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39042 and 1.39218.
- Support line of 1.38338 and 1.38162.
Commentary/ Reason:
The British pound was up 0.40% at $1.3868, to touch its highest in more than 2-years.
Sterling was boosted by receding expectations for negative interest rates in Britain and after reports that Britain’s real GDP was stronger in the final quarter of 2020 than had been forecast.
The pound also moving higher on the prospects that the UK economy may be able to recover sooner than other countries as the pace of its vaccinations quickens. The UK has vaccinated 25% of its adult population, and the pace of vaccinations is accelerating as the UK is now vaccinating 10% of its adults every 10 days.
