Risk appetite investors are once again back in the markets on increasing signs that a global economic recovery is occurring, which causes them to turn to higher yielding assets versus lower yielding assets. As major currencies are on the rise, we are also seeing global stock markets rally as confidence is slowly increasing in global markets. The dollar is seen declining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 86.47 while recording a high of 87.01 and a low of 86.33.
The euro zone released its industrial production which showed that they surpassed market expectations, therefore hinting that domestic demand is improving. As a result of the upbeat data, we witnessed that the euro dollar rise to the highest level in more than a week. The pair is currently trading at 1.2246 above the support of 1.2220 and the resistance of 1.2335 while recording a high of 1.2272 and a low of 1.2114. Over the one-hour charts, we see that the pair is being traded in an overbought area as supported by the momentum indicators.
The pound like the euro is rallying versus the dollar as currently investors are more interested in higher yielding assets despite the lack of economic data today from the United Kingdom. The GBP/USD is currently trading at 1.4751 above the support of 1.4730 and the resistance of 1.4795 while recording a high of 1.4786 and a low of 1.4549. The technical charts are also here showing us over the one-hour basis, that the pair is being traded in an overbought area, while on the daily charts we see that the pair is bullish.
Turning to the yen, we see that it is the loser in the markets, as investors are not seeking refuge against the debt crisis and are currently focused on higher yielding currencies. The USD/JPY is currently trading at 91.89 while so faring marking a high of 92.11 and a low of 91.58. Currently we see there is a support at 91.45 and a resistance at 92.65.