The attention in the currencies markets is currently not on the dollar, yet is it is climbing as a result of the weakness of major currencies. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently rising, trading at 85.00 while recording a high of 85.13 and a low of 84.54.
The euro extended its decline today versus the dollar on worries that the government might not be able to tame the deficit that is choking the breath out of the euro zone. Although the EU and IMF supported the euro zone by providing a bailout worth nearly $1 trillion, still conditions are stressed from the sovereign debt which might spread throughout European nations. As the focus remains on the debt crisis, investors are selling the euro while currently the EUR/USD pair is being traded at 1.2590 above the support of 1.2510 and below the resistance of 1.2665. So far, the pair recorded a high of 1.2683 and a low of 1.2560, while technically looking at daily charts, the pair is being traded in an oversold area.
In theUK, data released today showed that the trade deficit widened in March as a result of higher imports which outweighedthe pound depreciation against the federal currencywhich should have supported exports and therefore would positively affect the trade balance. The GBP/USD is currently trading at 1.4773 between the support of 1.4690 and the resistance of 1.4810 while recording a high of 1.4916 and a low of 1.4742. The technical charts here show us over the one-hour basis that the pair is traded in an oversold area, pressured from the deadbeat data.
From the pessimism in the markets, the yen is climbing against the dollar as currently investors are buying lower-yielding currencies and selling higher yielding currencies. The USD/JPY is currently trading at 92.84 above the support of 92.30 and the resistance of 93.65 while recording a high of 93.63 and a low of 92.79. The volumes indicator is showing us there is low volume in markets.