The U.S. dollar rebounded against majors today, after announcements by the chairman of the Federal Reserve, Ben Bernanke yesterday, that the FED will use contraction monetary policy once the economy shows progress. The announcement boosted demand on the dollar, causing it rebound from 14 month low against a basket of major currencies, as indicated by the dollar index which is currently at 76.30 compared with yesterday's closing at 75.89.
The euro-dollar pair declined on the daily charts, while it is consolidating on the 4-hour and 1-hour charts. The euro touched it highest in two weeks versus the dollar yesterday; however, today the dollar pared some of its losses. The ECB left the benchmark interest rate unchanged and announced that a strong dollar is better for the
The pound-dollar pair showed a decline on the daily and 4-charts. Yesterday, the BoE held the interest rate at 0.5%. Today, the
The dollar-yen pair is still inclining on the daily charts, but on the 4-hour and 1-hour charts, while the pair is showing a decline. The yen dropped today to the lowest level in 2 weeks against the dollar, as