The U.S. economy yesterday released its FOMC minutes in which there was nothing new to surprise markets as still overall economic conditions are enhancing gradually. The dollar is currently on the ladder versus major currencies while the Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 86.46 while recording a high of 86.79 and a low of 86.05.
The euro depreciated against the dollar on worries that the European governments are gong to split up on how they are going to deal with the debt crisis in the region. The pair has rebounded from trading close to a four-year low, while today UBS AG and BNP Paribas SA said that the debt crisis will continue to pull down the euro for the upcoming years. Although, the euro is weakening, yet this is supporting exports in the euro zone, which is supporting overall global recovery.
Currently the EUR/USD pair is being traded at 1.2388 between the support of 1.2320 and the resistance of 1.2440 while recording a high of 1.2436 and a low of 1.2305, the RSI indicator over the daily basis, is showing us that the pair is being traded in an oversold area.
Turning to the pound, we see that it continues to trade in an oversold area supported by the daily technical charts. The UK economy today released its retail sales showing that it declined, as spending remains pared from the high unemployment rates, and this further weighed on the strength of the pound. Also the pound remains under pressure from the highest budget deficit in the UK, which is believed to be the highest since WWII. The pound dollar pair is currently trading at 4.4303 below the resistance of 1.4400 and above the support of 1.4250 while recording a high of 1.4464 and a low of 1.4246.
Japan expanded in the first quarter by 1.2% and this supported the yen in the markets to rally against the dollar. The USD/JPY pair is currently trading at 90.63 between the support of 90.20 and the resistance of 91.00 while the volume indicator is supporting the fact that there is low volume in markets over the one-hour basis. So far the pair recorded a high of 91.87 and a low of 90.53.