Currencies ahead of U.S. data

By IBTimes Staff Reporter | January 08 2010 7:16 AM

The markets are currently calm ahead of the U.S. data as investors are waiting patiently for labor report to be released later this afternoon, the non-farm payrolls in December are expected to show that the nation did not shed jobs. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 77.94 while recording a high of 78.08 and a low of 77.79.

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The euro zone released its final third quarter reading showing it was unchanged 0.4% while unemployment soared higher to 10.0% from the revised prior reading of 9.9% from 9.8 percent. The euro versus the dollar is being traded at 1.4303 between the support of 1.4280 and the resistance of 1.4360 while the pair recorded a high of 1.4334 and a low of 1.4286. The volume indicator on the one-hour chart is showing us that there is weak trading in the markets.

The pound against the dollar is currently being traded at 1.6005 between the support of 1.5905 and the resistance of 1.6055 while the pair so far recorded a high of 1.6037 and a low of 1.5914. The momentum indicators on the one-hour charts are revealing to us that the pair is being traded in an overbought area, yet here also the markets are stable while the pound was not affected by the UK releasing its PPI reading beating market expectations, as the news showed that prices climbed therefore easing deflation risks.

Turning to the dollar yen pair we see that it is traded at 93.29 recording a high of 93.66 and a low of 92.83, for the USD/JPY we see there is a support at 92.75 and a resistance at 93.50. The momentum indicators are showing us that there is an upside trend, on the one-hour charts.