Today the focus in the markets is on the interest rate decisions as the ECB and the BoE are scheduled to leave interest rates steady at 1.00% and 0.50% respectively and as a result of these announcements, the markets are steady while the dollar is mixed versus major currencies. In the U.S. economy today, they are releasing initial and continuing claims ahead of the jobs report tomorrow which is another reason why the markets are calm.
For the EUR/USD we see there is low volume in the markets using volumes indicator on the one-hour chart. The pair is currently trading at 1.4848 while recording a high of 1.4875 and a low of 1.4810 as there is currently a support at 1.4819 and another one at 1.4762. We could see that as a result of the lack of movement in the markets, the euro is struggling to climb to the resistance of 1.4932 as also the markets await President of the ECB Jean-Claude Trichet to speak giving an outlook for the euro zone. From the zone, today they released their retail sales showing they plummeted and this indicated that consumption remains curtailed which is undermining growth prospects.
In the UK today, it is a big deal as it is presumed that the BoE is going to add an additional 50 billion pounds to current 175 billion pounds used to buy gilts as a way to provide tranquility in the financial system. In addition, the central bank as mentioned will announce interest rate, and as investors wait for the big announcements, we see the pound trying it hardest to gain versus the dollar. The GBP/USD is being traded at 1.6547 between the support of 1.6501 and the resistance of 1.6610 while recording a high of 1.6565 and a low of 1.6464.
The yen is gaining ground versus the federal currency as the pair is being traded at 90.19 between the support of 90.10 and the resistance of 90.31 while recording a high of 90.84 and a low of 89.98. The momentum indicators on the one-hour charts are providing us with a sideways wave.