The U.S. economy released its job report which showed that conditions remain fragile in the job sector, yet this did not negatively affect the dollar as a result of the Federal Reserve Bank of Dallas President Richard Fisher commenting hinting that the central might tighten monetary policy ahead of other central banks, and this meant that they were getting ready to raise interest rates. The comments supported the dollar in the markets as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently inclining trading at 87.75 while recording a high of 87.87 and a low of 86.89.
The euro zone released its GDP for the fourth quarter reading showing that it was unrevised at 0.4% while on the year was revised upwards to 0.6% from 0.5%, this data did not support the euro as there are still worries regarding the debt crisis in the euro zone, which is weighing on the euro.
Also the euro declined after Hungary stated that it was in a very grave situation causing the credit-default swaps on sovereign bonds to rally therefore adding to the current debt woes. The euro dollar pair is currently trading at 1.2037 above the support of 1.2000 and below the resistance of 1.2105 while recording a high of 1.2215 and a low of 1.2016. Over the one-hour basis, the momentum indicators are showing us that the pair is being traded in an oversold area.
Although the UK lacked major economic data today, yet we see the royal currency sliding downwards especially after the U.S. data meant that the world's strongest nation might continue to witness sluggish growth led from the higher unemployment rates and fewer jobs added to the employment sector. The GBP/USD is currently trading at 1.4560 while recording a high of 1.4680 and a low of 1.4538. The technical charts here also over the one-hour basis are showing that the pair is being traded in an oversold area as there is a support of 1.4485 and a resistance of 1.4600.
The USD/JPY pair today is bearish as the yen is on the rise especially as a new Prime Minister was elected in Japan while investors are currently seeking a refuge against the debt crisis. The pair is currently trading at 92.0 posting a high of 92.88 and a low of 91.88, the technical charts are showing us that there is a support at 91.60 and a resistance at 92.50.