The attention today in the U.S. economy is on the FOMC rate decision while it is anticipated that the Feds will start exiting stimulus measures as a result of a recovery occurring. As a result of these speculations, we see that the dollar is climbing versus major currencies. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 82.29 while recording a high of 82.55 and a low of 82.09.
The euro resumed its depreciation in the markets versus the dollar marking now a one-year low on anticipations that the EU and IMF bailout plan provided to Greece will not be enough for them to tame their deficit, as we might see debt spread throughout the euro zone. Also yesterday we witnessed Standard & Poor's downgrade Greece's and Portugal's credit rating, and this weighed on the euro's strength further causing it to decline more. The volume indicators on the one-hour charts are showing us there is low volume in the markets.
The pound like the euro is under pressure, especially ahead of the UK elections which are scheduled on the 6th of May while expectations show these elections might not have a clear winner. The pound dollar pair is currently trading at 1.5170 between the support of 1.5125 and the resistance of 1.5290 while recording a high of 1.5287 and a low of 1.5144. The momentum indicators are showing us on the one-hour charts that the pair is being traded in an oversold area.
The dollar yen pair is rallying as result of the increased demand on the dollar ahead of the FOMC, the pair is currently trading at 93.77 between the support of 92.70 and the resistance of 94.80 while recording a high of 93.90 and a low of 92.98. The technical charts are showing us that the pair is being traded in an overbought area on the one-hour charts.