[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21609 and 1.21911.
- Support line of 1.21005 and 1.20703.
Commentary/ Reason:
The euro increased 0.11% to $1.21403, extending its second day of advance while also touched a new weekly high earlier.
The EUR/USD is strengthened with risk assets in favour.
Ahead on Tuesday, investors are looking to euro zone growth estimates, a German sentiment survey and U.S. manufacturing data to gauge the relative pace of the world’s pandemic recovery.
Euro-area finance ministers also will discuss the bloc’s current economic situation and outlook on Tuesday.
While Federal Open Market Committee minutes from the January meeting are due tomorrow.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89403 and 0.89766.
- Support line of 0.88677 and 0.88314.
Commentary/ Reason:
With risk assets in favour, safe havens dipped. The dollar retreated against the Swiss franc on Tuesday, trading at 0.88906, down 0.07% on the day to touch a new weekly low.
Switzerland's 30-year government bond yield rose above 0% for the first time since early 2020.
Traders took a more cautious view of the pace of the U.S. economy's rebound. 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 1.39547 and 1.40107.
- Support line of 1.38427 and 1.37867.
Commentary/ Reason:
Sterling was up around 0.3% to trade at $1.3939, eased below its $1.3950 mark hit earlier today, the highest level since April 2018. The currency has gained almost 3% from early-February lows.
The pound moving higher after the UK reaches milestone of offering the COVID-19 vaccinations to 15 million people, and now eyeing its way out of its third national lockdown.
Britain's Brexit deal with the EU has also removed some pressure from the currency.
