The dollar is climbing in the markets as investors are filled with optimism that the U.S. economy labor report tomorrow might show that the economy did not shed jobs in December, therefore investors are buying the dollar versus major currencies as they look forward to the outlook of the U.S. nation. The Dollar Index measuring six major currencies versus the dollar is traded at 77.88 while recording a high of 77.89 and a low of 77.29.
The euro zone released its confidence indicators while an overall picture we see an improvement in confidence as consumers are looking forward to the outlook, yet the euro is declining as the focus this week in markets is on the labor report from the U.S. economy. The EUR/USD is currently traded at 1.4342 recording so far a high of 1.4446 and a low of 1.4331, for the pair we see a support at 1.4275 and a resistance at 1.4430. On the one-hour charts, the momentum indicators are revealing to us that the pair is in an oversold region.
The Bank of England today is announcing interest rates and APF program decision while expectations show that the central bank will leave interest rates at 0.50% while resuming with the current amount applied to the nation, which is 200 billion pounds. The pound versus the dollar is currently traded at 1.5916 between the support of 1.5830 and resistance of 1.6055 while recording a high of 1.6057 and a low of 1.5906, looking at the momentum indicators on the one-hour charts we see that the pair is being traded in an oversold area here also.
The yen declined in the markets after the Japanese Finance Minister Naoto Kan, as his first day as finance minister said that he supports a weaker yen, investors hearing the news right away began to sell the yen in the market causing the USD/JPY pair to rise. The pair is currently traded at 92.94 between the support of 91.90 and resistance of 93.65. The momentum indicators on the one-hour charts are showing us that the pair is trading in an overbought area.