The dollar is mixed in the markets rising versus the euro as a result of its weakness while declining against the royal currency as Kraft Food Inc. finally agreed to take over for Cadbury Plc for 11.9 billion pounds. Looking at the Dollar Index, which usually gauges strength of the dollar versus six major currencies, is currently traded at 77.37 while recording a high of 77.42 and a low of 76.93.
As Germany released its ZEW survey regarding economic sentiment showing that it declined to 47.2 from the prior 50.4, indicated that expectations regarding the economic outlook is weakening, therefore weighed heavily on the euro against the dollar causing it to tumble in the markets. The lower confidence meant that future weaker spending taking place in the nation meaning growth prospects are undermined. The EUR/USD is currently traded at 1.4305 while recording a high of 1.4413 and a low of 1.4301 as there is a support level at 1.4260 and a resistance at 1.4430. Using the momentum indicators on the one-hour charts are showing us a downwards trend.
Turning to the pound we see that it inclined after the UK CPI data as inflation beat estimates and prior readings which therefore eased the fears of deflation risks. Currently the pound is beginning to lose slight ground versus the dollar as the pair is being traded at 1.6357 between the support of 1.6355 and the resistance of 1.6410, the pair so far recorded a high of 1.6457 and a low of 1.6338. The one-hour charts reveal that the pair is trading close to an oversold area.
As the dollar is gaining momentum in markets, we see that it is also climbing against the yen as the pair is currently traded at 90.87 between a support of 90.40 and the resistance of 91.20 while recording a high of 90.88 and a low of 90.30 so far.