The U.S. economy released its housing starts showing that it fell to 593 thousand from the revised prior reading of 659 from 672 thousand, and despite this news, it did not weigh on the dollars strength although investors were disappointed from the outlook of the U.S. economy especially as the housing sector weakened. The dollar is seen inclining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 86.17 while recording a high of 86.37 and a low of 85.91.

The euro declined in the markets for the first time in three days versus the federal currency as a result of renewed fears that the debt crisis might spread further especially as earlier today in the markets, there were speculations that Spain might seek aid, while the government denied those facts. The euro dollar pair is currently trading at 1.2290 above the support of 1.2215 and the resistance of 1.2335 while recording a high of 1.2353 and a low of 1.2235.

The United Kingdom today released its unemployment rates showing that they declined, yet the released of the news did not support the pound as currently the focus in markets today is on the sovereign debt which is curbing economic growth, which causes investors to avoid higher yielding currencies. The GBP/USD pair is currently trading at 1.4793 above the support of 1.4730 and below the resistance of 1.4850 while recording a high of 1.4829 and a low of 1.4747. Over the one-hour basis, the technical charts are showing that the pair is consolidating.

Turning to the dollar yen pair we see that the dollar is weakening versus the yen, especially after the release of the U.S. data. The pair is currently trading at 91.32 while recording a high of 91.82 and a low of 91.07. Over the one-hour basis, we see that the pair is being traded in an oversold area, as the technical charts are showing us while there is a support at 90.60 and a resistance at 91.75.