The dollar is climbing in the markets as investors look forward to President-elect Barack Obama infrastructure spending project and reduced tax cuts to add 3 million jobs in the U.S. economy. Also traders are aware that the Feds are careful about what type of debts they purchase and for how much. Today the U.S. economy is scheduled to release construction spending in which expectations show further weakness as a result of the deepening housing slump.

The euro is depreciating in the markets on anticipations that the ECB will reduce interest rates to fight recession. Also the markets are expecting Europe to undershoot inflation targets which further supports a rate cut by the central bank. The EUR/USD is currently trading at 1.3921 while recording a high of 1.3962 and a low of 1.3842 while on the four-hour chart we see that the momentum indicators are providing us with an upside direction. For the pair we see that there is a resistance at 1.3944 and a support at 1.3865.

This week there is a lot of attention on the Bank of England as the markets are expecting an interest rate cut of 50 basis points to ease the recession while avoiding deflation risks. The GBP/USD is currently traded at 1.4556 while recording a high of 1.4578 and a low of 1.4428. The MACD indicator supported by the 5 and 20 days on the daily chart show us that the trend is to the downside.

The yen is climbing versus the greenback as Japanese investors are getting rid of the higher-interest overseas assets in fears of a global recession. The pair is currently trading in narrow ranges at 91.83 while recording a high of 92.17 and a low of 91.78.