Well, well, well, isn't it just a glorious day from the Royal currency! Despite that the labor data from the United Kingdom are still negative, yet they finally reflected a sense of stability and a sign of a hit bottom. The Kingdom was the only economy lost in the wilderness of the dark recession seas and now seemingly it at least eyes the rest of the grouping economies on the brinks of recovery! On the back of the labor data sterling was capable of acquiring strength to head to the upside entering 1.63 areas once again.
In less than two hours, sterling rose from its lowest versus the dollar at 1.6229 to hit the highest at 1.6358 affected by the positive patter on 30-minute basis while the data managed to support the move as investors now see the UK joining other nations and exiting the recession.
Sterling is currently trading above 1.6275 and seemingly after the pair reached 1.6335 the intraday direction for today has reversed to the upside as far as the pair settles above this level which might ignite a new upside wave towards 1.64 areas.
The annual CPI inflation inclined by 0.5% in the euro area below estimates, while according to other industry figures; we can see that the economy continued its expansionary pace into December, supporting the consolidation of the economy out of its recession.
The data was capable of halting the euro's decline versus the dollar settling for the lowest set at 1.4808 rebounding to the upside towards 1.4568; the pair is currently trading around 1.4550 in a very tight trading range as investors are still worried over the health of the Greek economy with the national debt and bankruptcy being the pillar for all fears, despite that Trichet already assured that Greece will not be facing bankruptcy.
The euro is trading above 1.4500 support, yet still the solid top at 1.4585 is steady till now and that is negatively influencing the pair. Intraday momentum indicators are heavily oversold and that might help the euro breach 1.4585 barrier and this is the only case that might support the index in rising towards the next resistance at 1.4675 and breaching the mentioned resistance is the key to this upside move.
As for the Japanese yen, it's under strong negative pressures today, yet during the European session, the pair was incapable of trading above 89.87 after the pair inclined from the lowest set at 89.36 as the 90.00 area is still the iron citadel that is holding the dollar back from extending its gains on the back of the yen. The dollar is fluctuating heavily in the market as notions are conflicting over the outlook for the economy and the monetary policy in the US, where the FOMC is waited to clarify the prospects for future moves today. The pair is currently trading positively yet breaching the lowest set today might take the pair in a new bearish wave that will surrender the dollar's acquired gains, yet so far, we can assure that the pair is trading clearly sideways.