The dollar we see currently is rising in the markets versus major currencies as a result of the stock markets plummeting therefore arousing fears that the global recovery is taking longer than presumed based on company and bank earnings which leads to lower demand on higher yielding assets. As demand on higher yielding assets weakens, we see that this gives the dollar a chance to gain momentum.
The euro is depreciating heavily in the markets as once again the worries led investors to sell higher yielding currencies which weighed on the strength of the euro heavily. The EUR/USD is being traded at 1.4661 between the support of 1.4629 and the resistance of 1.4693 while recording a high of 1.4810 and a low of 1.4644. The momentum indicators on the one-hour charts are showing us that the there is a downside trend.
The United Kingdom released its PMI construction showing that in October the sector continued to contract and this data did not support the pound in the markets as it is seen to continue declining against the dollar. The GBP/USD is currently trading at 1.6327 between the support of 1.6252 and the resistance of 1.6360 while recording a high of 1.6419 and a low of 1.6269. After the pair was trading in an oversold area, the momentum indicators now are providing us with an upwards direction on the one-hour charts.
The yen is seen inclining versus the dollar as investors are more interested now in lower yielding currencies like the yen. The pair is currently trading at 90.10 while recording a high of 90.48 and a low of 89.86 as there is a support at 89.82 and a resistance at 90.50. For the USD/JPY the momentum indicators are providing us with an upwards channel on the one-hour charts.