The U.S. economy is not on the right road to recovery as lately the housing sector slowed its climb while the job sector remains fragile, while today the nation released its ADP employment change which showed that less than jobs than projected were added to the private sector. As a result of the unclear situation in the U.S., we see that the dollar is declining while the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 85.98 while recording a high of 86.26 and a low of 85.59.
The euro today was supported in the markets as a result of the ECB lending banks less money than projected worth 131.9 billion euros, therefore meaning that the financial sector is not as bad as assumed by investors. As a result of lower money being lent to banks, attracted investors to buy the euro as the currency's appeal was increased. The euro dollar pair is currently trading at 1.2237 above the support of 1.2210 and below the resistance of 1.2300 while recording a high of 1.2304 and a low of 1.2164.
Turning to the pound dollar pair, we see that the psychological level of 1.50 was broken while the pair continues its downside trend after it was trading near an overbought area for the last couple of days. As investors lock in on gains, caused the pound to depreciate, while today investors were waiting for the GDP data which was delayed until next month. The pair is currently trading at 1.4966 between the resistance of 1.5075 and the support of 1.4900 while posting a high of 1.5072 and a low of 1.4960 so far.
The dollar yen pair is consolidating as the technical charts showed that the pair was being traded in an oversold area, supported by the daily charts. The USD/JPY is currently trading at 88.50 while recording a high of 88.76 and a low of 88.37. There have been speculations that the pair decline was overrated as we see a support of 88.00 and a resistance at 89.25.