The U.S. economy released its annualized GDP showing that it expanded the most in six years by 5.7% surpassing market expectations alongside the University of Michigan releasing its confidence showing that it leaped higher than projections which therefore meant that consumers are looking forward to the outlook of the nation. The upbeat data supported the dollar to climb in the markets while the Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 79.26 while recording a high of 79.32 and a low of 78.84.
From the euro zone, we see that unemployment rates were released coming in at 10.0% from the revised prior reading of 9.9%, the employment sector in the euro zone continues to suffer from the worst recession since World War II. As the data was pessimistic weighed further on the euros strength against the dollar as currently we see the pair traded at 1.3919 between the support of 1.3870 and the resistance of 1.4000. The EUR/USD pair recorded a high of 1.3986 and a low of 1.3902 while the momentum indicators on the one-hour charts show us that the pair is being traded in an oversold area.
The pound like the euro is depreciating against the federal currency as the pair trades at 1.6063 between the support of 1.6000 and the resistance of 1.6170 while recording a high of 1.6178 and a low of 1.6022. On the one-hour charts we see using the volume indicator that there is low volume in the markets while the pair is currently traded in an oversold area. Although the United Kingdom released data regarding housing sector showing improvement, still the pound is pressured in the markets as a result of the rising dollar.
The dollar yen pair is rallying as investors are buying the dollar as they are optimistic about the outlook of the nation as currently the pair is traded at 90.73 between the support of 89.85 and the resistance of 91.20 while recording a high of 90.91 and a low of 89.57. The momentum indicators here show us that the pair is being traded in an overbought area, also using the one-hour charts.