Optimism faded from markets today, as once again investors doubt if the provided aid from EU and IMF worth almost $1 trillion will actually help indebted nations tame their deficits and avoid downgrades and Greek contagion.

From the fears in markets, risk averse investors hogged the markets, while they turned to lower yielding currencies while selling higher yielding ones. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining around 84.49, recording a high of 84.68 and a low of 84.13.

The euro reverses yesterday's gains from the breath of optimism leaving markets, while the director of the International Monetary Fund (IMF) said that the aid provided to Greece might not be enough support in the long term, as there are doubts if the deficit would be contained before spreading to Spain and Portugal. The EUR/USD pair is currently trading at 1.2700 between the support of 1.2615 and the resistance of 1.2740 while recording a high of 1.2802 and a low of 1.2667.

The royal currency like the euro, is seen depreciating from the political issues in the UK, especially as the results of the election revealed no clear winner as Conservatives lacked seats in Parliament, falling short of 326 needed to form a new government.

As a result of the political havoc the sterling versus the dollar is currently trading at 1.4774 above the support of 1.4690 and below the resistance of 1.4850. The pair so far recorded a high of 1.4886 and a low of 1.4761. The charts are showing us that the pair is traded near oversold areas over four-hour basis.

As stocks tumbled from the fears that took over markets, we saw that the yen rallied against the dollar, as investors are currently more interested low yielding currencies. The USD/JPY is currently trading at 92.36 above the support of 91.45 and below the resistance of 92.75; over four-hour basis, the volume indicator is supporting the fact there is low volume trading in markets, as the pair so far records a low of 92.23 and a high of 93.38.