[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21117 and 1.21353.
- Support line of 1.20353 and 1.20117.
Commentary/ Reason:
The euro was flat at $1.2090 on Friday after rising 0.45% overnight, although the single currency is still poised for a small weekly loss.
The currency was little changed on mixed economic data. The string of soft labour data is weighing on the dollar while other indicators have shown resilience, and as President Joe Biden’s pandemic relief efforts take shape, including a proposed $1.9 trillion spending package.
In Europe, core bond yields have pushed higher led by the so-called “reflation trade” where investors wager on a pick-up in growth and inflation. Germany’s 10-year yield on Thursday posted its highest close since June.
[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 higher against the Swiss franc on Thursday, added 0.07% to trade at 0.89634, not far from its weekly high touched overnight.
A declined stock market overnight and hopes for a stronger U.S. economy boosted liquidity demand for the dollar. The President Joe Biden’s pandemic relief efforts take shape, including a proposed $1.9 trillion spending package.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.40218 and 1.40783.
- Support line of 1.38389 and 1.37823.
Commentary/ Reason:
Sterling was mostly flat at $1.39627 on Friday following a 0.8% jump in the previous session, rose as high as $1.39848 for the first time since April 2018.
It is on track for a sixth straight weekly rise.
GBP/USD on Thursday posted an almost 3-year high on hawkish comments from BoE policymaker Saunders when he said the scope to cut interest rates is currently "very limited.", which boosted gilt yields and pushed GBP/USD higher. The 10-year gilt yield jumped to a new 10-3/4-month high.
The positive sentiment also came amid Britain’s aggressive vaccination programme.
The fast COVID-19 vaccinations programme also boosted the economy as the British consumer confidence at the most since pandemic struck almost a year ago.
