The dollar declined in markets after U.S. President Barack Obama is planning to restrict risk taking transactions by financial institutions, as a way to avoid another credit crisis. The statement caused investors to sell the dollar fearing more troubles in U.S. banks. The Dollar Index, which usually measures strength of the dollar versus six major currencies, whichis currently traded at 78.16 while recording a high of 78.46 and a low of 78.03.
The euro dollar pair is seen inclining but not as a result of the euros strength, but as a result of the dollars weakness in the markets after Obama's plans. The EUR/USD is currently traded at 1.4122 between the support of 1.4050 and the resistance of 1.4205, while recording a high of 1.4165 and a low of 1.4066. Looking at the one-hour charts, we see that the volume indicator is showing low volume in markets, while the momentum indicators are providing us with a downwards trend.
The United Kingdom released its retail sales showing that for the year ending in December came in at 2.1%, which is worse than the revised prior reading of 2.7% from 3.1%. The deadbeat data caused the pound to lose grounds, since December sales usually boost overall retail sales readings as a result of the Christmas Day Holiday. The GBP/USD is being traded at 1.6189, while recording a high of 1.6282 and a low of 1.6166 as we currently see a support at 1.6100 and a resistance at 1.6285. In addition, momentum indicators provide us with a downwards trend on the one-hour charts.
Once again, the dollar yen pair isseen the same light as the dollar depreciates versus the yen; while the pair is traded at 90.31 between the support of 89.60 and the resistance of 90.55. The USD/JPY so far recorded a high of 90.56 and a low of 89.77, as the momentum indicators on the one-hour charts are showing us that the pair is trading close to an overbought area.