The dollar is the winner in markets as it is seen rising versus major currencies especially after China's Premier said that the global recovery remains uneven which scared investors from higher yielding assets pushing them towards the lower yielding assets. As investors began buying the dollar itgained momentum.
The European Central Bank today released its November monthly report as they revised upwards economic growth for this year and next year, although this data should have boosted the euro in the markets, we currently see it declining against the dollar based on correctional movements. The pair is being traded at 1.4921 between the support of 1.4889 and the resistance of 1.4958 while recording a high of 1.5015 and a low of 1.4902. The momentum indicators are showing that the pair is being traded close to an oversold area.
The pound is extending its decline in markets after the Bank of England Governor Mervyn King stated that a weak pound will support the United Kingdom step out of recession. Also King hinted that he might extend the APF program therefore scaring investors away from the pound as the outlook of the UK is shaky. The GBP/USD is being traded at 1.6541 between the support of 1.6506 and the resistance of 1.6637 while recording a high of 1.6625 and a low of 1.6514.
The dollar is also climbing past the yen heading towards the resistance of 90.49 while trading above the support of 90.10 at 90.34. The pair recorded a high of 90.42 and a low of 89.63 while the momentum indicators are showing that the pair is being traded in an overbought area.