[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20616 and 1.21138.
- Support line of 1.18925 and 1.18403.
Commentary/ Reason:
The dollar held near a 3-month high against the euro set last Friday, to last stood at $1.19112 on Monday.
The dollar is strengthening due to the rising U.S. Treasury yields that continued to test cross-asset risk sentiment, added with U.S. Congress that is on the cusp of sending a $1.9 trillion stimulus bill to President Joe Biden for him to sign off.
Even though Fed Chair’s Powell reiterated a commitment to maintain ultra-easy monetary policy, some analysts still worried rising Treasury yields could herald higher borrowing costs, thereby limiting the fragile U.S. economic recovery, hence bolstered demand for the dollar.
The ECB meets on Thursday amid talk that it will protest the recent rise in euro zone yields and perhaps mull ways to restrain further increases.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93304 and 0.93660.
- Support line of 0.92592 and 0.92236.
Commentary/ Reason:
The dollar was higher against the Swiss franc on Monday, rose to its highest since August, to trade at 0.9317, extending the gains for the fourth straight day.
The bout of higher U.S. bond yields undermined low-yielding currencies, including the safe-haven Swiss franc.
Fiscal stimulus also fuelled market expectations for a rapid recovery, with President Joe Biden close to passing a $1.9 trillion spending package.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39017 and 1.39627.
- Support line of 1.37797 and 1.37187.
Commentary/ Reason:
The dollar held near a 1-month high against the British pound, to trade at $1.3837.
The dollar on Monday garnered support from a rise in T-note yields.
