Dollar rallies past major currencies

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The dollar is climbing in the markets versus major currencies as a result of fears filling the markets after China is going to lend fewer amounts of loans to consumers and businesses, therefore, this spurred worries that economic growth will stagger. As a result of this, investors started selling higher yielding assets, turning to lower yielding assets which supported the rise of the dollar. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 77.94 while recording a high of 78.02 and a low of 77.46.

The euro is pressured in the markets as a result of worries that Greece's widened budget deficit will spread throughout the euro zone, causing investors to get rid of the euro. The EUR/USD is currently traded at 1.4158 between the support of 1.4115 and the resistance of 1.4255 while there is a high of 1.4289 and a low of 1.4153. The momentum indicators on the one-hour charts are showing us that the pair is being traded in an oversold area while the volume indicator indicates that there is low volume in the markets.

The United Kingdom today released its unemployment rates showing that for the three months ending in November fell to 7.8% from 7.9%, yet this did not support the pound as investors are frantically selling higher yielding assets, weighing on the pound. The pound also fell after Mervyn King; Governor of the BoE said that the rise in inflation is only temporarily. The pound versus dollar pair is being traded at 1.6255 while recording a high of 1.6369 and a low of 1.6259, according to the charts we see there is a support at 1.6240 and a resistance at 1.6345. The momentum indicators here also indicate that the pair is oversold on the one-hour charts.

As investors are seeking lower yielding assets, supports the yen to rally past the dollar as currently the USD/JPY is traded at 90.85 while recording a high of 91.35 and a low of 90.77, for the pair we see there is a support at 90.50 and a resistance at 91.35. Like the other pairs mentioned, here too we see the pair is traded in an oversold area.

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