The dollar rose to its highest level against the euro and the pound after the Fed announced its growing concern about the growth outlook in the U.S. economy along with its decision to rebalance the balance sheet by selling short term securities versus buying long term securities, which increased risk aversion in FX market and drove investors to buy the greenback as a safe haven.
The euro retreated against the U.S. dollar during today's Asian session. The EU currency is trading as of this writing at 1.3541 after recording the highest of 1.3589 and the lowest of 1.3526. On the short term the currency faces a support at 1.3500 while the momentum indicators show the pair is trading in an oversold area.
The pound fell against the U.S. dollar during today's Asian session touching the highest of 1.5502, after it recorded the lowest of 1.5447, and as of this writing it is trading at 1.5457. On the short term the currency faces a support at 1.5360, while the momentum indicators show the pair is trading in an oversold area.
The dollar/yen pair advanced today where it reached to its highest at 76.95 level, the pair now is trading at 76.73 recording the lowest of 76.59. Momentum indicators show the pair is heading to the upside.