The dollar has stepped down from the stage as the climb it has been posting lately came to an end after the International Monetary Fund (IMF) said yesterday that the a rebound in economic growth for next year will be higher than projected in April, this right away prompted investors to sell lower yielding assets while buying higher yielding assets which meant the federal currency plummeted in the markets versus major currencies.
The European Central Bank released its monthly bulletin for July saying that the bank expects growth in middle of next year while inflation to return to normal levels in the long term as they currently pressured from the recession. As currently there is slight optimism in the markets, we see that investors are more interest in higher yielding currencies which is increasing the appeal of the euro in the markets. The EUR/USD is being traded at 1.3959 while recording a high of 1.3968 and a low of 1.3859, for the pair we see that there is support at 1.3895 and a resistance at 1.3973.
Today the Bank of England is scheduled to announce their rate decisions in which expectations show that the central bank will leave them steady at 0.50% while also markets wait and see if the MPC members will continue to use quantitative easing methods to shore up economic growth. The pound too like the euro is rallying against the dollar as the pair trades at 1.6186 between the support of 1.6045 and the resistance of 1.6197 while recording a high of 1.6193 and a low 1.6036.
The yen after rising lately versus the federal currency today we see that the rise halted on anticipations that Japanese imports sold the yen while also correctional movements are occurring as the climb the yen was posting lately versus the dollar was too much. The USD/JPY is being traded at 93.26 while recording a high of 93.60 and a low of 92.68 while the momentum indicators are showing us a sideways wave as we see there is a support at 92.80 and a resistance at 93.50.