The dollar weakened in the markets on anticipations that the Federal Reserve Bank will continue their stimulus packages while leaving interest rates at record low. Based on the speculations, caused the dollar to lose strength in the markets versus major currencies as investors were disappointed by the outlook of the U.S. economy. The Dollar Index, which usually gauges strength of the dollar versus six major currencies, is currently traded at 75.07 while recording a high of 75.70 and a low of 75.03.
The euro zone released its PMI manufacturing and services showing that both of the sectors continued to expand therefore supporting the fact that the worst of this global recession is over which increased the demand on higher yielding currencies. The upbeat data supported the euro to further rise while the EUR/USD is being traded at 1.4974 between the support of 1.4935 and the resistance of 1.4996 while recording a high of 1.4989 and a low of 1.4848. The momentum indicators are showing us that the pair is being traded in an overbought area.
The United Kingdom today lacks major economic data yet the pound is gaining momentum over the weak dollar as the pair is being traded at 1.6606 while recording a high of 1.6626 and a low of 1.6474. For the pair we see there is a support at 1.6559 and a resistance at 1.6716. The momentum indicators on the one-hour charts are also revealing that the pair is being traded in an overbought area.
The USD/JPY is consolidating between the support of 88.70 and the resistance of 89.12 at 88.87 while recording a high of 89.01 and a low of 88.56. The Williams'% R indicator on the one-hour chart are providing us with a downwards trend on the one-hour chart.