The Japanese yen and U.S. dollar; retreated today against higher-yielding currencies, on optimism in regards to economic recovery worldwide, after the upbeat data released recently and rising stocks. The dollar index, a gauge of the dollar's strength against a basket of major currencies, dropped to 78.05 from today's opening at 78.13. Trading is within narrow ranges at the week end, where many traders are closing positions.
The euro-dollar is trading with an upside bias, seen over the daily and 4-hour charts. The euro zone released its confidence report for August today; showing improvement, giving more hopes that the worst is over in the euro area. Meanwhile, the euro is traded at 1.4361, recording a high of 1.4377 and low of 1.4323, where the pair is supported by 1.4325 and faces the coming resistance of 1.4375.
As for the sterling-dollar pair; it reversed from its downside trend, which started since reaching the high of 1.7041 on August 5, on the daily charts. The pair is also showing a slight incline on the 4-hour charts. The data released today in the U.K., showed an ease in contraction in the second quarter's GDP. So far, the pound is trading at 1.6317, setting a high of 1.6334 and a low of 1.6256; while the coming support for the pair is seen at 1.6263, and the resistance is spotted at 1.6326.
The dollar-yen pair is showing an upside tendency over daily charts, reflecting the fears in markets, ahead of the release of important U.S. data later on today. Now, the pair is trading around 93.90, after hitting a high of 94.08 and a low of 93.41; while the pair is currently facing the coming support level at 93.75, while the resistance is spotted at 94.05.