Markets are still living in worries stemming from the renewed debt concerns spreading in Europe amid the uneven recovery signs in global economies. The Japanese yen advanced against majors as the G-20 during their meeting last weekend failed to boost confidence after they said they will not embark on cutting deficits till recovery strengthens.
On the other hand, the U.S. dollar gained against a basket of major currencies as seen by the dollar index which climbed to 85.45 from the day's opening at 85.32. Today's data showed that U.S. consumer spending increased which reflects confidence in recovery, but the dollar did not respond strongly to the upbeat data.
With regard to the euro-dollar pair, it is showing decline on the daily charts after advancing in the prior three sessions in the absence of economic data from the euro area today ahead of the release of confidence report tomorrow. The euro remains under pressure especially as the G-20 leaders did not outline a clear strategy to combat debt crisis and regain financial stability. Meanwhile, the pair is trading at 1.2325 while recording a high of 1.2397 and a low of 1.2308. For the rest of the day, the pair is predicted to move between support and resistance at 1.2280 and 1.2400 respectively.
As for the sterling-dollar pair, it is continuing its upside trend where the pair rose after it closed on Friday above psychological level at 1.50. The pound rallied last week after the announcement of emergency budget which boosted hopes the government will be able to cut its huge debt that is threatening recovery. The pair is currently trading at 1.5095, recording a high of 1.5102 and a low of 1.5015, while it is expected to move between support at 1.5010 and resistance at 1.5120.
Relative to the dollar-yen pair, it is falling for the fourth consecutive session after the breach of support at 89.25. Worries in markets enhanced demand on the yen and gold as safe-havens. The pair is currently trading at 89.11, recording a high of 89.46 and a low of 89.04, whereas support is seen at 88.35 while resistance is at 90.20.