The dollar is losing grounds in marketsdue tomore investors turning to higher yielding assts, while selling lower yielding assets that weigh on the dollar's strength in markets. More signs are appearing in the market regarding a global economic recovery, while bets are set onthe Federal Reserve Bank keeping interest rates near zero for an extended period. Chairman of the Fed BankBen Bernanke,is due to speak today about the financial crisis.
As the euro zone lacks economic fundamentals, we still see the euro surging in markets versus the dollar trading in an overbought area using the momentum indicators on the one-hour charts, although struggling to break the resistance of 1.4936 successfully, while there is a support at 1.4906 and at 1.4871. The pair is currently traded at 1.4932, while recording a high of 1.4948 and a low of 1.4827, as the Volumes indicator also on the one-hour chart are showing us low volume in markets.
The pound against the federal currency is trading in narrow ranges between the support of 1.6205 and the resistance of 1.6334 at 1.6274. The Volumes indicator is also showing us here that that there is low volume in markets. The GBP/USD pair so far recorded a high of 1.6370 and a low of 1.6239, while the Moving Average indicator on the one-hour chart is providing us with a downwards direction.
The dollar is depreciating in markets; where the yen is climbing at the expense of the greenback's weakness. The USD/JPY is being traded at 90.64 between the support of 90.31 and a resistance of 91.04, while recording a high of 91.10 and a low of 90.35.