So far fears are strongly spread throughout the currencies market ahead of tomorrow's U.S jobs report and since that today labor data came out gloomy, the overall change in the number of people filing for unemployment benefits rose unexpected, having US Initial Jobless Claims of January 30 rising to 480 thousand and the Continuing Claims of January 23 rose to 4602 thousand.
Whereas worries inflate on the European continent as Greece, Portugal and Spain are strongly struggling to restrain their heaving budget deficits, knowing that those indirectly affect the overall recovery of the European Union from the worst recession witnessed since WWII and that the European Central Bank President Jean-Claude Trichet affirmed publicly that Greece would not be able to have its deficit under control.
Moreover, stock markets dropped heavily today after the worse than expected earnings that were released from a number of U.S. major companies, where investors were worried that the ongoing weakness of economic activity will continue to weigh down on companies' profits, and accordingly investors headed for low yielding investments including the Dollar and the Yen, which provided both with huge momentum against major currencies.
As a result, the euro plummeted to a one-year low against the yen as a result of these present economical suspicions with a euro-dollar pair currently narrow trading on correctional movements, having in fact the Union currency now trading at 1.3755 recording a high of 1.3902 and a low of 1.3725 with a resistance at 1.3860 and a support seen at 1.3670, knowing that the pair may start to climb slightly to the upside according to the four-hour and one-hour stochastic oscillator.
Still, the pound-dollar pair continues on plunging as the dollar remains on pulling the pound to the downside as its refuge appeal is strongly boosted by the current worries spread, although the pair shows a strong tendency to start inclining according to the four-hour and one hour time-charts momentum indicators, having the royal pound is now trading at 1.5774 recording a high of 1.5917 and a low of 1.5728 with a resistance at 1.5910 and a support at 1.5615.
Now, the dollar fell to a two-month low against the Japanese currency that is now strongly demanded, knowing of course that the yen received a huge boost amid the rising uncertainty in financial markets, having accordingly the pair so far trading around 89.07 recording a high of 91.06 and a low of 88.53, while a resistance level is witnessed at 90.80 and a support level is detected currently around 88.00.