Federal currency rebounds in the markets

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The dollar climbed in the markets versus major currencies as a result of worries that the lower lending that will happen by banks in China will lead to stagger economic growth in the world's third-largest nation. The U.S. economy released its consumer confidence showing that it was worse than expectations and a slight rise from the previous reading. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 77.24 while recording a high of 77.27 and a low of 76.74.

Although the euro zone released its CPI showing that the general price level is rising and that this meant that deflation risks are heavily easing, still we see that the euro is depreciating versus the dollar as a result of the widened budget deficit in Greece, hurting investors confidence towards buying the euro. The EUR/USD is currently traded at 1.4365 between the support of 1.4315 and the resistance of 1.4435 while recording a high of 1.4511 and a low of 1.4359. On the one-hour charts we see the momentum indicators are showing us that the pair is being traded close to an oversold area.

The pound like the euro is losing grounds versus the dollar, as the dollar after declining lately in the markets for the past couple of days, is now rebounding while the GBP/USD is currently trading at 1.6275 recording a high of 1.6355 and a low of 1.6262. Also, here on the one-hour charts, we see that the pair is traded by an oversold area. For the pair we see that there is a support at 1.6240 and a resistance at 1.6345. The moving average indicator, which is known as a lagging indicator, provided us with a downwards trend.

As investors are currently buying lower yielding assets since they remain worried about global economy, boosts the yen in the markets against the federal currency. The USD/JPY is being traded at 90.87 between the support of 90.35 and the resistance of 97.25 while recording a high of 91.31 and a low of 90.59.

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