The dollar is easing its gains versus major currencies, while the major focus in markets is set on the jobs report to be released from the U.S. economy on Friday, which would help us better comprehend current job conditions. Today, the economy is releasing ADP employment change with expectations showing 20 thousand jobs shed in the private sector. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 80.39 while recording a high of 80.55 and a low of 80.22.
The euro rallied in markets versus the dollar as Greek Prime Minister, George Papandreou, announced a new measure to help narrow the budget deficit, since there will be 4.8 billion euros in reducing the deficit by increasing taxes on tobacco, sales and alcohol which will help raise 2.4 billion euros. The EUR/USD pair is being traded at 1.3626 between the support of 1.3585 and the resistance of 1.3670, while recording a high of 1.3663 and a low of 1.3591. The volume indicator on the one-hour charts is showing us that there is low volume in the markets.
The United Kingdom released its PMI services showing that it surpassed expectations to rise to 58.4 in February from 54.5, and as the service sector represents nearly 75% of the GDP; therefore increased the appeal of the pound in the markets as the dominate sectors improve, meaning that economic conditions in the UK are improving. The GBP/USD pair is being traded at 1.5014 between the support of 1.4945 and the resistance of 1.5085 at 1.5015, so far the pair recorded a high of 1.5075 and a low of 1.4958.
Turning to the dollar yen pair, we see that the pair is consolidating between the support of 88.50 and the resistance of 89.30 at 88.73. The pair so far recorded a high of 88.98 and a low of 88.46, as there is also low volume in markets based on the one-hour chart.