[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19595 and 1.19780.
- Support line of 1.18701 and 1.18426.
Commentary/ Reason:
Monday's tumble in the lira saw the wobble on the euro, that dragged the currency down slightly on the dollar to $1.18974.
In Turkey, Erdogan fired the central bank governor only two days after a sharp rate increase that was meant to head off inflation of nearly 16% and support the lira.
COVID-19 concerns in Europe also are undercutting the EUR/USD. German Health Minister Spahn on Friday said that Germany is in the grip of a “third wave” of rising COVID cases and “there are some fairly challenging weeks ahead of us.”
A stronger dollar and higher T-note yields also weighed on the common currency.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93214 and 0.93570.
- Support line of 0.92059 and 0.91702.
Commentary/ Reason:
A decline in risk appetite also weighed on the Swiss franc. The greenback rose 0.16% to stood at 0.92968 franc.
Investors flocked towards the safety of the dollar after President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor with a critic of high interest rates. The plunge in the lira sparked talk that capital controls might be needed to stem the rout, though the wider fallout was relatively restrained for the moment.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38557 and 1.38757.
- Support line of 1.38157 and 1.37957.
Commentary/ Reason:
The dollar edged up against the British pound to $1.38487.
The spike in the Treasury yields, Turkish lira situation, and BoE monetary policy last week weighted on the pound sterling.
Investors flew towards the dollar after Turkey President Erdogan stunned investors over the weekend by replacing the hawkish central bank governor with a critic of high interest rates.
The greenback also has been supported by a paring of bets for its decline, with speculators cutting net short positions.
