The dollar is surging past major currencies as a result of the worries around the European continent and the deficit that is widening, especially in the United Kingdom and the euro zone. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 81.75 while recording a high of 81.89 and a low of 81.58.
The European Central Bank (ECB) announced its interest rates today leaving them steady at 1.00% while President of the ECB, Jean-Claude Trichet, said rates are appropriate. The euro continued to decline versus the dollar, to mark the most declines since January, on worries that Greece may fail to tackle their budget deficit therefore worsening the outlook of Europe. The EUR/USD is currently trading at 1.3307 between the support of 1.3270 and the resistance of 1.3340 while recording a high of 1.3347 and a low of 1.3281.
The Bank of England also today announced benchmark rates leaving them unchanged at 0.50% while continuing to leave APF program on pause while policy are not taking further action on the monetary policy, until after the May 6 election. The pound in the market is currently highly affected from the political issues in the economy, while today we see the GBP/USD is currently trading at 1.5171 between the support of 1.5180 and the resistance of 1.5265 while recording a high of 1.5242 and a low of 1.5140.
The yen gained momentum as a result of the more risk averse investors in markets seeking lower yielding currencies versus higher yielding currencies, which therefore increases the appeal of the yen against the dollar. The USD/JPY is currently trading at 93.02 above the support of 92.30 and below the resistance of 93.60 while recording a high of 93.42 and a low of 92.82.