The dollar is gaining massive grounds in the markets as investors are avoiding higher yielding assets which once again supports the dollar to rise versus majors as once again there are worries in the markets that the global recovery might take longer than presumed to happen, especially as European economies are having a hard time to try and lower their deficits. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 79.59 while recording a high of 79.70 and a low of 79.34.
Today is a big day in the euro zone as today the ECB will announce interest rates in which expectations show that they will remain steady at 1.00% while later on in the day, President Jean-Claude Trichet will give speak at press conference stating the latest economic progress. Currently we see that the EUR/USD is being traded at 1.3845 between the support of 1.3800 and the resistance of 1.3925 while so far recording a low of 1.3825 and a high of 1.3902. The momentum indicators on the one-hour charts are showing us a downwards trend while the pair trades close to an oversold area.
The Bank of England today is scheduled to announce their rate decision in which expectations show will leave them steady at 0.50 percent, the lowest since the bank's foundation in 1694. Also the pound like the euro is plummeting versus the federal currency based on the fears in the markets; the pair is currently traded at 1.5847 while recording a high of 1.5917 and a low of 1.5822. For the GBP/USD we see that there is a support at 1.5800 and a resistance at 1.5910, while here also we see that the pair is being traded in an oversold area.
Turning to the yen, we see that it is a different story as it rises past the dollar especially after retail sales in Australia unexpectedly fell while unemployment rates in New Zealand soared to the highest level since 1999, therefore increasing the appeal of the yen as a refuge. The USD/JPY is being traded at 90.59 between the support of 90.20 and the resistance of 91.30 while recording a high of 91.07 and a low of 90.58.