The dollar is seen rising versus major currencies, as a result of the stock market tumbling and therefore reducing the appeal of higher yielding assets; increasing the demand on lower yielding assets. Also, the dollar climbing was led by correctional movements. All the mentioned reasons are enough to support the rise in the dollar.
The euro zone released its GDP for the second quarter final reading, showing that it was revised downwards to 0.2 percent and this caused investors to sell the euro against the federal currency. The EUR/USD is being traded at 1.4682 between the support of 1.4657 and the resistance of 1.4689, while recording a high of 1.4736 and a low of 1.4663. The momentum indicators on the one-hour charts are revealing that the pair is trading near an oversold area.
The pound vs. the dollar is trading in narrow ranges between the support of 1.5863 and the resistance of 1.5957 at 1.5894. The royal currency movement will remain calm ahead of the BoE interest rate decision tomorrow, while the markets are waiting to get hints of the outlook of the
The yen is losing massive grounds versus the dollar but not due to its weakness, as a result of the dollars strength in markets. Currently, we see the USD/JPY is being traded at 89.16, while recording a high of 89.38 and a low of 88.00 heading towards the resistance of 89.70, as there is a current support of 88.70.