The dollar is gaining momentum as a result of the weakening of the major currencies as currently there is pessimism in the markets which causes investors to sell higher yielding currencies, therefore this boosts the dollar in the markets. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 78.75 while recording a high of 78.80 and a low of 78.21.
The euro zone released data regarding the manufacturing and service sectors, yet they were mixed while currently the major worry in the 16-region nation is on the widened budget deficit of Greece, as there are fears it might spread to other major economies. The EUR/USD is being traded at 1.4038 while recording a high of 1.4136 and a low of 1.4028, the momentum indicators on the one-hour charts show us that the pair is being traded in an oversold area. Looking at the charts we see there is a support at 1.4000 and a resistance at 1.4145.
The United Kingdom released its public finances showing that the budget deficit widened to 23.6 billion pounds from the downwards revision of 14.6 billion pounds, the figure meant that the government in December continues to borrow therefore choking an economic recovery for the nation. The pound declined more versus the dollar after the deadbeat data, the GBP/USD is currently traded at 1.6134 between the support of 1.6100 and the resistance of 1.6295 while recording a high of 1.6310 and a low of 1.6124. The pair here is also being traded in an oversold area as shown on the one-hour charts using the momentum indicators.
As China released its GDP for the fourth quarter, showing that it expanded to 10.7% from the revised prior reading of 9.1% from 8.9%, caused investors to sell the yen as they no longer need it as a refuge. The USD/JPY is currently traded at 91.85 between the support of 91.35 and the resistance of 92.20 while recording a high of 91.85 and a low of 91.17 as the pair trades in an overbought area.