Investors are optimistic as a result of higher stock markets despite the debt woes in Europe which have been weighing on higher yielding assets, currently investors are more interested in major currencies which is weighing on the dollar's strength. The dollar is seen declining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 86.33 while recording a high of 86.88 and a low of 86.30.
Today, we saw that confidence tumbled in Germany which caused the overall confidence in the euro zone to decline, yet the euro we saw was not affected by the news while we see investors continue to buy higher yielding assets versus lower yielding assets, therefore supporting the euro to rise further. The EUR/USD pair is currently trading at 1.2263 above the support of 1.2160 and below the resistance of 1.2335 while recording a high of 1.2277 and a low of 1.2166. The technical charts are showing us over the one-hour basis that the pair is being traded in an overbought area.
The United Kingdom today released its CPI rates which showed that inflation declined which kept the pound inclining in the markets especially, since lately there have been worries about rising inflation. The pound dollar pair is currently trading at 1.4745 above the support of 1.4650 and the resistance of 1.4795 while recording a high of 1.4781 and a low of 1.4680. The momentum indicators over the one-hour basis are showing that the pair is consolidating.
Turning to the dollar yen pair we see it declining but not because of the yen's strength but due to the dollar's weakness especially as the U.S. empire manufacturing was worse than market expectations. The USD/JPY is currently trading at 91.21 above the support of 90.60 and below the resistance of 91.80 while so far marking a high of 91.68 and a low of 91.06.