The dollar fell in the middle of the European trading trimming the losses during last week after fears dominated markets about the global economic recovery, especially with the tendency of some global central banks to raise interest rates in attempts to control inflation.
The lack of economic fundamentals today fueled the fluctuation in the currencies markets, as investors are waiting for tomorrow's data to be released from China and the USA about the PPI and the retail sales during last month.
USDIX dollar is currently trading around 74.65 recording the intraday high at 74.95 and the low of 74.61.
The euro rose against the dollar after falling sharply last week, after Mr. Trichet's conference spread fears in the financial markets about the economic recovery in the euro zone. Especially with the tendency of the ECB towards raising the benchmark interest rate next month, and the future expectations which indicates a sluggish pace in the economic growth and high inflation rates.
The pair is trading within a narrow range today, because of the low volume of trading in the financial markets because of the absence of France, Germany, Switzerland and Australia, and the pair is currently trading around 1.4370 recording the intraday high at 1.4390 and the low of 1.4319 compared to the opening at 1.4325; technically the pair is trading between the main support level around 1.4150 and the resistance level around 1.4560.
The pound rose against the dollar to settle the trading around 1.6300 with the lack of economic data from the royal economy, the BOE in the Bulletin said that the future expectations for inflation are still anchored. Nevertheless, they see that the failure in controlling the increase in the general levels of prices made Britons lose their fate in the decision maker's ability to handle the situation. The pair opened today at 1.6228 recording the intraday high at 1.6322 and the low of 1.6215.
The dollar rose against the Japanese yen passing through 80 levels after it opened at 80.25 and then it rose recording the intraday high at 80.68 and the low of 80.21, technically it's expected to continue the downside move provided to close below 79.30 achieving the goals at 77.70.