Yesterday's session reverses as currently we see the dollar reverse its gains versus major currencies led from higher stock markets. Once again there is optimism in the markets as a result of improved profits from banks therefore encouraging investors to buy higher yielding assets while selling lower yielding assets therefore weighing on the dollar's strength causing it to depreciate in the markets.
The euro is gaining strong momentum versus the federal currency as the momentum indicators on the one-hour charts are revealing that the pair is currently traded in an overbought area. The EUR/USD is currently traded at 1.4756 while recording a high of 1.4772 and a low of 1.4701. For the pair we see there is a support at 1.4696 and a resistance at 1.4766 while the volumes indicator also on the one-hour chart are showing us there is low volume in the markets.
As the United Kingdom released its service sector showing that the expansion continued, and as this sector represents 75% of the GDP, supported the pound to surge versus the dollar as investors look forward to the outlook of the economy. The GBP/USD is currently trading at 1.6528 while recording a high of 1.6543 and a low of 1.6399 as the pair climbs to the resistance of 1.6615. For the pair we see there is a support at 1.6472 while the momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area.
The increased risk appetite in the markets is reducing the demand for the yen in the markets as it is considered a lower yielding assets while investors are more interested in higher yielding assets, as a result of this, we see the yen lose grounds against the dollar. The USD/JPY is being traded at 90.90 while recording a high of 90.95 and a low of 90.04 as the pair is climbing towards the resistance of 91.04.