The dollar fell in the markets versus major currencies as there are anticipations that an economic recovery is taking place around the world which increases the appeal of the higher yielding currencies which therefore weighs on the strength of the dollar in the markets. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 78.87 while recording a high of 79.06 and a low of 78.67.
As investors are buying higher yielding assets therefore supports the euro in the markets while the euro zone released its retail sales showing that in December and on the year it improved, which meant that spending is occurring in the 16-nation region, therefore supporting overall growth. The EUR/USD is currently traded at 1.4009 between the support of 1.3925 and the resistance of 1.4055, while the pair recorded a high of 1.4025 and a low of 1.3945. The momentum indictors on the one-hour charts are showing us that the pair is being traded close to an overbought area.
The United Kingdom released its PMI services showing that in January the expansion narrowed to 54.5 from 56.8, which weighed on the pounds momentum versus the dollar despite investors currently purchasing higher yielding currencies. The GBP/USD is currently traded at 1.5983 below the support of 1.5945 and above the resistance of 1.6010 while recording a high of 1.6069 and a low of 1.5966. The momentum indicators on the one-hour charts provide us with a downside trend while the volume indicator shows us that there is low volume in the markets.
The yen is weakening against the federal currency as the stock markets are adding points, which reduces the appeal of the yen while the pair trades at 90.55 between the support of 90.20 and the resistance of 91.10, so far the pair recorded a high of 90.59 and a low of 90.05.