Euro tumbles on renewed Greece fears

By IBTimes Staff Reporter | April 21 2010 9:39 AM

The dollar is gaining momentum, as investors are avoiding higher-yielding currencies on renewed worries in markets, as we saw the U.S. stock-index futures decline especially as Boeing Co. posted lower profits. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 81.20 while recording a high of 81.32 and a low of 80.96.

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The euro depreciated in the markets versus the dollar on renewed fears that the bailout of 45 billion euros being provided from the EU and IMF will not be enough for Greece to tackle the budget deficit. As a result of these worries, we saw that investors sold the euro, while the EUR/USD is currently trading at 1.3399 between the support of 1.3335 and the resistance of 1.3500, as the pair records a high of 1.3446 and a low of 1.3357.

Looking at the pound, we see that it is a different story as it is currently rising as a result of jobless claims declining in the UK, which boosted the royal currency versus the dollar. The GBP/USD is currently trading at 1.5438 between the support of 1.5330 and the resistance of 1.5430 while recording a high of 1.5438 and a low of 1.5311. The momentum indicator on the one-hour chart is showing that there is a sideway wave.

The dollar-yen pair is currently trading at 93.20 above the support of 92.85 and below the resistance of 93.70 while recording a high of 93.40 and a low of 92.92, the four-hour indicator is showing us that the pair is being traded in an overbought area.