[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21025 and 1.21321.
- Support line of 1.20067 and 1.19771.
Commentary/ Reason:
The euro was holding at $1.2040 on Thursday after sliding 0.55% overnight, its most in two weeks.
EUR/USD slipped on weaker-than-expected Eurozone economic data that is dovish for ECB policy. Eurozone Jan new car registrations fell to its the biggest decline in 8 months while Eurozone Dec construction output decline to its most in 8 months.
Meanwhile, the U.S. economic data was bullish for the dollar. U.S. Jan retail sales increase to most in 7 months, while PPI ex-food & energy also rose stronger than expectations and the largest increase in 16 months. In addition, Jan manufacturing production also rose.
U.S. Fed rhetoric remains dovish as the FOMC committee suggesting policymakers may indeed let the economy run hot, which for now means less U.S. dollar support.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90103 and 0.90376.
- Support line of 0.89221 and 0.88948.
Commentary/ Reason:
The dollar was flat against the Swiss franc on Thursday, trading at 0.89883, holding as it touched a 1-week high yesterday.
A declined stock market overnight and hopes for a stronger U.S. economy boosted liquidity demand for the dollar. Although the Wednesday's minutes of the Jan 26-27 FOMC meeting were dollar-negative as the Fed officials stated that they did not see the conditions for reducing their asset-purchase program being met for "some time."
The policy meeting minutes also reinforced the central bank’s willingness to let the economy run hot while keeping monetary settings ultra-accommodative.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39130 and 1.39420.
- Support line of 1.38190 and 1.37900.
Commentary/ Reason:
The British pound eased slightly on Thursday, to trade at $1.38557.
British annual budged that will be announced on the March 3 is going to provide the next clue on the country’s finance.
