The dollar and the Japanese currency rose against the majors during the Asian session over believes that the global economy is loosing momentum. The British economy released yesterday the house prices index which fell, which determined the international investors to look for safer assets such as the yen and dollar.
Today, the Chinese economy released its trade balance surplus which widened during the month of July, where the Chinese export inclined, while the U.S. economy will release the unit labor coast for the second quarter of the year.
The Euro fell against the dollar and the Yen, where the euro/dollar pair recorded a low of 1.3134 and a high of 1.3218, having the pair trading around 1.3152. According to the daily momentum indicators, the pair is in a downtrend, trading between its resistance of 1.3125 and the support at 1.3055.
Turning to the British pound which slumped against the dollar during the Asian session, and declined to 1.5860, recording the lowest of 1.3134, trading around 1.5808. On the other hand, the four hour and daily momentum indicators show that the pair is in an overbought area signaling a possible correctional movement.
The dollar/yen pair fell to reach the 86.66 level, after recording a high of 86.04. The pair is trading now at 85.80. On the other hand, the pair is trading in an overbought area according to the four hours and daily momentum indicators, the resistance level ahead resides at 87.00 and the support at 84.80.