The general trend in markets today is still favoring the dollar, despite the positive start for the euro and sterling versus the dollar, the greenback emerged once again to claim its territories.
European equities declined today despite the 110 billion euros aid approved for Greece, which so far hints further pessimism over the contagion spread that already crept closer to Portugal and Spain. The data from the US confirmed the Feds view on subdued inflation though with ongoing recovery as consumption and spending start to grow while from Europe the good PMI data failed to uplift the sentiment and absent UK markets helped lower the volume as well.
The euro declined versus the dollar from the highest recorded at 1.3359 to set the lowest at 1.3204 and still lingers around its weakest today. The pair is trading above 1.3205 support and below the minor resistance at 1.3240 which precedes the main resistance at 1.3300. A bearish technical pattern is under formation and targets further bearishness with the breach of 1.3205.
Sterling declined today from the highest reached at 1.5334 to set the lowest at 1.5209. The bearish trend for sterling halted at the lowest recorded and currently trading around 1.5274. Sterling has been advancing versus the dollar in the last hour, and currently among 1.5525 support and 1.5350 resistance and is still generally bearish today, especially with absent UK markets for the Banking Holiday.
The Japanese yen continues the downside move versus the dollar as the yen weakened from its strongest today around 93.82 to then take the pair higher towards 94.58 per dollar. The pair is trading among the support -previously breached resistance- at 94.00 and the resistance at 94.80 with a clear bias to the US dollar.