The euro and the pound slipped today, on fears spread in the currencies market after the People's Bank of Japan decided to force banks to increase their deposits by 0.5%, in an attempt to control inflation and avoid a bubble formation. Investors turned to buy the dollar and the yen as China's decision affect their appetite for risk.
The euro dollar pair declined in today's Asian session recording a low of 1.4405 and a high of 1.4502, having the 16 nation's currency trading around 1.4435. This came ahead of the release of the euro zone's CPI and trade balance that may move the market on release. The pair is expected to be trading between 1.4385 and 1.4620, and momentum indicators on the daily charts are supporting the downside.
Regarding the pound dollar pair, it fell slightly for the first time this week to record a low of 1.6283 and a high of 1.6355, having the royal pound trading around 1.6335. The pair will be trading between 1.6190 and 1.6410 today, and it is currently trading in an overbought area according to the four hours and daily stochastic oscillator.
Finally, the dollar declined against the yen to record a low of 90.91 and a high of 91.31, and the pair is currently trading around 91.15. The pair extended its declined targeting the 90.00 levels, and today it is having a support at 90.70 along with a resistance at 92.60. Yet, the pair is trading in an oversold area according to the daily momentum indicators.