[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21922 and 1.22180.

-        Support line of 1.21085 and 1.20826.

Commentary/ Reason:

  1. The euro up 0.11% to $1.2174, not far from its 1-month high touched on Tuesday ($1.2179).

  2. A rally in stocks weighed on the dollar, as did dovish Fed comments.

  3. EUR/USD also jumped as higher German bund yields and German 4Q GDP growth revised up in second estimate offset concerns of extension of lockdowns in Germany, although France Feb business confidence fell weaker than expectations.

  4. In the second day of testifying, Fed Chair Jerome Powell emphasized the U.S. central bank's promise to get the economy back to full employment, with little worry about inflation unless prices begin rising in a persistent and troubling way.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.90999 and 0.91193.

-        Support line of 0.90373 and 0.90179.

Commentary/ Reason:

  1. The dollar reverses yesterday’s 3-month high to traded lower on Thursday against the Swiss franc. Last traded at 0.90603, down 0.05%.

  2. Swiss franc pushes higher as investors increased bets of extended easy monetary conditions globally boosted appetite for riskier assets.

  3. In a second day of testimony in Washington, Powell reiterated that interest rates will remain low and the Fed will keep buying bonds to support the U.S. economy, which many traders say is a long-term negative factor for the dollar.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.42571 and 1.43193.

-        Support line of 1.40556 and 1.39933.

Commentary/ Reason:

  1. The British pound extends the climb for more than a week, rose to $1.41623, not far from its highest since April 2018.

  2. Despite a stabilizing greenback, market sentiment was somewhat offset by the roll out of the British COVID-19 immunization vaccine programme as it indicates a bright outlook for the economy.

  3. Investors cheer Britain's rapid coronavirus vaccination programme and its plans to ease lockdown restrictions on economic activity. UK Prime Minister Johnson said he is "very optimistic" that UK restrictions on social contact will end in June.

  4. Higher gilt yields also supported gains in GBP/USD after the 10-year UK gilt yield rose to an 11-month high Wednesday of 0.804%.

  5. Diminished Brexit uncertainty also lifted the pound.

GBPUSD