Clear differential and diverse trends are seen for majors today, as not certain path is taken, and each sets its own path against the dollar. Despite that the Japanese yen was capable of acquiring gains versus majors yet the confusion dominates the air and mixed trading is seen on the back of this volatility. Where Bernanke renewed fears over the state of the economy flowing Friday's jobs optimism and Dubai World's talks over rescheduling debt are seemingly bumping into hurdles!
Sterling was pressured today by the continued weak data from the economy as the industrial sector started the last quarter of the year with a slow performance reversing earlier stability. Adding to that Moody's said that the UK and the US top Aaa debt rating was not immune and be downgraded further lower as they sank below their other six major country's within the top rating to resilient as others retain their higher resistant category.
Sterling declined versus the dollar after it attempted to limit its losses. Sterling dropped from the highest recorded at 1.6475 to set the lowest at 1.6324 close to the lowest traded yesterday. The negative strain and the selling pressures are still clear as the pair lingers around its lowest for the day which is the barrier for the pair from heading back to retest 1.6405 or continuing further towards the next support at 1.6250.
As for the euro, it generally inclined versus the dollar from its lowest at 1.4779 to trade again around 1.4845 areas, yet we can see that the pair failed in trading above 1.4867 pressured by the 1.4860 resistance which we did not see any hourly closing above it; therefore, despite the gains the euro managed to acquire today the general trend remains to the downside as far as trading is stable below the resilience of the 1.4905 resistance.
The Japanese yen on the other hand managed to stretch its gains versus majors, and managed to drag the USDJPY pair to the downside from the highest for the dollar set at 89.51 towards 88.56 and this is considered bearish dollar trading considering traded areas above 90.00 yesterday.