The dollar is vigorous in the markets as last year the Feds reduced interest rates to near-zero interest rates between the range of 0.0-0.25 percent as now other major central banks are expected to slash interest rates to stimulate economic growth and battle deflation fears. Gains in the greenback might be limited as the zero-interest rate policy is hurting the demand for dollar as investors start to lose interest. The U.S. economy is scheduled to show that the contraction is deepening in the manufacturing sector as the ISM manufacturing is expected to come in at 35.4 a slip from the previous 36.2.
The euro is weakening in the markets nearly around a two weeks low versus the dollar as the European Central Bank is projected to reduce interest rates to reduce the recession effects. Also since the currency has been trading in an overbought area lately meant that soon the trend was going to reverse to the downside. The pair is currently trading at 1.3842 while recording a high of 1.4027 and a low of 1.3839. The momentum indicators are providing us with a downwards channel as the upcoming target is at 1.3751.
For the pound we witness there was a gap in the markets as currently it is trying to cover the gap as we see it falling versus the dollar. The UK economy today is scheduled to release PMI manufacturing in which expectations show that the sector will further contract and this time to 33.6 from the previous of 34.4. The GBP/USD is currently traded at 1.4572 while recording a high of 1.4712 and a low of 1.4560 as the momentum indicators on the four-hour chart show us that the direction is to the downside.
The yen if falling against the dollar as the pair trades at 91.27 while recording a high of 91.28 and a low of 90.66 as the momentum indicators are providing us with an upside channel. The MACD indicator on the four-hour chart supported by the 5 and 20 days are also showing us upside momentum. For the pair we see there is support at 90.81 and a resistance at 91.91.