The dollar strengthened in the markets ahead of the Group of Eight nations (G8) meeting of finance ministers as there are anticipations that the U.S. Treasury Secretary Timothy Geithner might support the federal currency which right away increased the appeal of the dollar in the markets causing it to rise as investors bought the currency after gaining confidence that it will rise.
As the dollar climbed in the markets, the euro on the other side depreciated while the pair trades at 1.4022 while recording a high of 1.4128 and a low of 1.4019. The momentum indicators on the one-hour charts are showing us a downside wave. The Euro Zone today released its industrial production showing that it declined to -1.9% from the revised prior reading of -1.4% from -2.0% and this downbeat data weighed on the euro further. For the pair we see a support at 1.4004 and a resistance at 1.4055.
The pound versus the dollar also lost ground as currently investors are more interest in the dollar which ended the massive gain the pound posted yesterday after an MPC member said that the UK recession might be bottoming out. The pair is currently trading at 1.6437 while recording a high of 1.6599 and a low of 1.6422. On the four-hour charts, we see that the momentum indicators are providing us with a downwards trend. We see that there is a support at 1.6386 and a resistance at 1.6502.
The yen like major currencies is plummeting against the dollar as currently the pair is trading at 98.22 while recording a high of 98.29 and a low of 97.52. The one-hour chart is showing us that the pair is trading close to an overbought area as the pair is between the support of 98.02 and the resistance of 98.30.