The dollar is deprecating ahead of the U.S. fundamental data which is expected to show that pending home sales for May will plummet back into the negative region, while lately data from the housing market has been impaired therefore arousing anticipations that the U.S. is staggering to reach recovery. As a result of the latest housing data, the dollar is seen tumbling. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 85.21 while recording a high of 86.25 and a low of 85.10.

The European Central Bank is going to give banks 111.2 billion euros for six years as a way to aid them especially as the 12-month loan expires today. As the ECB gave loans, therefore increased optimism in markets as this meant that officials are using measures to help end the financial crisis and restore the long lost confidence for investors.

The euro dollar pair is bullish as supported by the momentum indicators on the daily charts, while over the four-hour basis we see that the pair is being traded in an overbought area. Currently the pair is trading at 1.2389 between the support of 1.2335 and the resistance of 1.2470 while recording a high of 1.2404 and a low of 1.2191.

Turning to the pound, we see that it is also climbing as investors are currently seeking higher yielding assets versus low yielding assets which therefore support the rise of the pound as demand on the demand on the currency increases. Also the optimism in markets came from Spain selling 3.5 billion euros of five-year bonds at an auction after Moody's Investors Service mentioned it would their credit rating. The pound dollar pair is currently trading at 1.5081 between the support of 1.4935 and the resistance of 1.5130 while posting a high of 1.5083 and a low of 1.4870.

The yen is rallying versus the dollar as currently investors are not interested in investing in the dollar especially as the U.S. economy's outlook is fuzzy. The USD/JPY is currently trading at 87.76 above the support of 86.90 and the resistance of 88.55 while recording a high of 88.55 and a low of 87.44.