The US dollar index weakened in the early hours of the European market. Investor seems to be trading in the tight ranges as the market is eyeing for the next week’s Fed meeting following the decision of the European Central Bank monetary policy. Moreover, the US tax hikes also impacting negatively on the USD.
The U.S. Dollar Index Futures against a basket of six currencies plunged 0.30% to 91.050. Next week, the Federal Reserve announce their monetary policy decision and the Fed’s outlook might dimmish US Treasury yield. Weak US Treasury yield adds further weakness in the USD index in the short-term period.
Moreover, COVID-19 vaccination is playing its part to strengthen the economy and investor sentiments. However, the Fed chair might not opt for the decision to reduce the bond-buying programme just like the ECB president, which is providing great support to the US economy.
Based on the technical analysis, the 90.7 level seems to be the immediate support level, where the bear might take a breath. Sustaining below the 90.7 level, possibly add further weakness, which could lead to a 90.14 level in the near-term period. However, the top 91.7 level proved to be the key resistance level before it develops the bull flag.
EUR/USD pair seems to be rising following the news of US tax hikes along with ECB monetary policy. Seems like the pair have more chances to rise in comparison to fall in the near-term period.
The EUR/USD pair soared 0.36% to 1.2058 in the early session of the European market. The pair started recovering following some minor declines witnessed on Thursday on the decision of the ECB meeting. Moreover, positive Eurozone PMI figures along with positive German PMI numbers possibly lift the Euro for the higher levels in the short-term period.
Based on the chart pattern, the 1.2154 level appeared to be the key resistance zone at the higher levels, where bulls might pause for a while. Sustaining above the 1.2154 level might add further strength to the pair. However, at the lower levels, the 1.1950 seems to be an immediate support zone before it slides down to lower levels.
The GBP/USD pair strengthened in the early session of the London opening following the upbeat UK economic figures. Positive UK retail sales numbers help to counter yesterday’s US dollar domination in the market. Moreover, the above-mentioned factors such as US Treasury yield weakness and US tax hikes appeared to be supporting the British Pound.
The GBP/USD pair climbed up 0.22% to 1.3866 in the early hours of the London opening. The UK economic reopening seems to be supporting the British Pound. The market appeared to be expecting further better economic numbers in the coming weeks, which might lift the sterling in the short-term period.
Based on the technical analysis, the 1.3860 level appeared to be the immediate support zone. Sustaining above the 1.3860 level might add further strength in the pair following the positive economic figures. However, at the higher levels, 1.4040 might play a key resistance zone role in the short-term period.