The dollar and the yen gained momentum against the majors today after fears within the financial markets mounted, with the approach of the European banks stress tests results. Contributing to today's pessimism were the doubts regarding the health of the US economy since the Jobs and industrial sector continue to deteriorate. Thereby investors lost today their appetite for risk and looked for safer assets like the dollar and the yen.
The euro against the dollar traded in a tight range between the highest of 1.2905 and the lowest of 1.2873. The pair now is trading around 1.2888 between 1.2950 and 1.2830. The European economic agenda will lack the fundamentals today; thereby the sentiment generated this week may have a word in the pair movement. The four hours momentum indicators show the pair is within an oversold area, but the daily indicators show that there is a chance for the pair to fall which might produce some fluctuations. If the downside movement persist then the pair will target the levels 1.2810 and 1.2775 on the short term.
The pound against the dollar traded between the highest of 1.5306 and the lowest of 1.5271. The pair now is trading around 1.5299 between 1.5350 and 1.5240. UK will release today Bank of England's minutes which might affect the pairs movement if any surprises occur. The four hours and daily momentum indicators show the pair might witness a downside movement, especially since there is a strong resistance at 1.5300. If the downside movement persist then the pair will target the level 1.5220 on the short term.
The dollar against the yen traded between the highest of 87.42 and the lowest of 87.05. The pair now is trading around 87.09 between 87.70 and 86.30. Bank of Japan released today its minutes, however since it didn't bring anything new, the effect on the pair's movement was limited. The daily momentum indicators show the is within an oversold area, however the four hours indicators show the pair have a chance to move lower.