The dollar is mixed in the markets while the U.S. released its retail sales showing that they fell in December despite the holiday shopping which should have boosted retail sales. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 76.88 while recording a high of 77.01 and a low of 76.68.
The European Central Bank today announced their rate decision leaving them steady at 1% while Trichet spoke at the press conference not mentioning much new to the markets but supporting a stronger dollar since this will restore investors' confidence, as lately a rising dollar meant that economic conditions in the U.S. are improving. As Trichet spoke we saw that the euro continued to lose momentum in the markets while it is currently traded at 1.4480 between the support of 1.4450 and the resistance of 1.4530 versus the dollar. The pair so far recorded a high of 1.4554 and a low of 1.4464.
Although the euro is declining against the federal currency, yet the story with the pound is different as the pound we see is vigorous versus the dollar despite the lack of major economic date from the United Kingdom. The GBP/USD pair is being traded at 1.6304 while recording a high of 1.6323 and a low of 1.6249. The momentum indicators on the one-hour charts are providing us with a bullish trend as there is a support at 1.6240 and a resistance at 1.6355.
As there are worries in the markets especially as the U.S. data was to the downside, investors are avoiding higher yielding assets as they trade in the yen which gives it a boost in the markets against the dollar. The USD/JPY is currently traded at 91.18 above the support of 90.70 and below the resistance of 92.10 while recording a high of 92.03 and a low of 91.12.