[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18294 and 1.18553.
- Support line of 1.17456 and 1.17197.
Commentary/ Reason:
The euro sat at $1.17740, not far above last week’s 5-month trough of $1.17614 and well below its 200-day moving average of about $1.1866.
The common currency is heading for its worst month since mid-2019 as Europe’s faltering vaccination programme runs into a wave of new infections, a bearish signal as positioning data shows investors remains heavily long euros.
European yields have been restrained by active buying from the European Central Bank, widening the dollar's yield advantage over the euro.
Meanwhile, the prospect of faster U.S. economic growth has spurred speculation of rising inflation and weighed on Treasury prices. President Joe Biden said he would double his vaccination goal, after surpassing 100 million shots 42 days ahead of schedule.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.94092 and 0.94278.
- Support line of 0.93720 and 0.93534.
Commentary/ Reason:
The greenback traded higher at 0.93948 Swiss franc, on optimism over the U.S. economy, with the U.S. President Joe Biden is expected to put some detail in his infrastructure spending plans on Wednesday.
Demand for the safe-haven greenback also is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38382 and 1.39075.
- Support line of 1.36985 and 1.36492.
Commentary/ Reason:
The dollar steadied against the risk-sensitive sterling, having fallen late on Friday with the positive mood.
Against the pound, the dollar was 0.14% higher, to trade at $1.37593.
Over the quarter the dollar has posted a 0.8% loss on the pound, which has been supported by Britain’s speedy vaccination rollout. Britain's vaccination programme has been one of the most successful in the world but there are concerns over supplies, high infections rates in parts of Europe and the ongoing emergence of new coronavirus variants.
Besides infection and inoculation counts, investors looking to PMI figures due midweek and for some details of U.S. President Joe Biden’s infrastructure spending plan.
