The dollar is appreciating in the markets as a result of worries that China is taking more actions to limit banks from lending as way to avoid another credit crisis, this caused investors to fear that it could hurt global growth, therefore they began to sell higher-yielding assets and buying the lower-yielding assets, which boosted the dollar in the markets. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 78.49 while recording a high of 78.54 and a low of 78.07.
The euro is losing momentum from the fears in the currency markets and despite Germany releasing confidence data showing that it reached an 18-month high while surpassing market expectations; the euro continues to tumble versus the dollar. The pair is being traded at 1.4082 below the resistance of 1.4140 and above the support of 1.4000 while recording a high of 1.4178 and a low of 1.4067.
The United Kingdom released its fourth quarter GDP showing that it expanded to 0.1% from the prior third quarter contraction of 0.2%, the upbeat data did not support the pound as currently investors are avoiding the higher-yielding currencies. The GBP/USD is currently traded at 1.6134 between the support of 1.6075 and the resistance of 1.6255 while recording a high of 1.6267 and a low of 1.6100. The momentum indicators on the one-hour charts show us that the pair is being traded in an oversold area, while the charts also show us that the volume in the market eased.
Since investors are more interested in the lower-yielding assets, we see that the yen is on the rise against the federal currency. The USD/JPY is currently traded at 89.68 while recording a high of 90.54 and a low of 89.37 as we see that there is a support at 89.00 and a resistance at 90.10. The momentum indicators here also show us that the pair is being traded in an oversold area.