Investors focus are later this week on the U.S. jobs reports as expectations show that the economy will add jobs in the economy while previously the nation has shed jobs, as jobs are added in the nation, supports the fact that global economic recovery is occurring therefore increasing appetite for higher yielding currencies. Currently, the dollar is declining versus major currencies while we see the Dollar Index, which measures strength of the dollar versus six major currencies, trading at 81.27 while recording a high of 81.68 and a low of 81.20.
The euro zone released its unemployment rate today showing that it inched higher to 10.0% from 9.9% which was inline with expectations while CPI flash estimate rallied to 1.5%. The euro was not affected by the unemployment rates rising as we see the currency rally past the dollar while the optimism in the markets is supporting the euro to rise further. The EUR/USD is currently traded at 1.3463 between the support of 1.3405 and the resistance of 1.3490 while recording a high of 1.3472 and a low of 1.3383. The momentum indicators on the one-hour charts are showing that the pair is being traded in an overbought area.
The pound like the euro is surging in markets against the federal currency while the pair is trading at 1.5132 between the support of 1.5055 and the resistance of 1.5225, the momentum indicators on the four-hour charts reveal that the pair is being traded in an overbought area, as we see a bullish trend. So pair the pair recorded a high of 1.5178 and a low of 1.5042.
As investors are more interested in buying high-yielding currencies, we see the yen tumble as it is a lower yielding currency. The USD/JPY is currently trading at 93.36 above the support of 92.70 and below the resistance of 94.00 while recording a high of 93.59 and a low of 92.74.