The highlight in European markets today was on Spain buying 30.5 billion euros of 10 and 30-year bonds which restored confidence and eased worries regarding the debt crisis in Europe, therefore this led investors to turn to higher yielding currencies. Also as global stock markets rallied, investors became more eager to buy major currencies. The dollar is seen declining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 85.70 while recording a high of 86.51 and a low of 85.64.

From the announcement of Spain buying the bonds, we saw the euro rally supported by the outlook of the euro zone and its sovereign debt conditions, the appeal of the euro is increased right away when a government from the euro zone takes an action towards taming their deficit, which boosts the euro in markets versus the dollar. The pair is currently trading at 1.2393 above the support of 1.2325 and below the resistance of 1.2430 while recording a high of 1.2409 and a low of 1.2240. Over the four-hour basis, we see that the pair is being traded in an overbought area.

The pound like the euro is on the rise especially as Governor of the BoE Mervyn King mentioned that interest rates were going to be hiked at the right time while they continue to monitor inflation. From the talks by King, the pound appreciated as investors look forward to higher rates, and this meant that the United Kingdom outlook was brightening. The GBP/USD is currently trading at 1.4825 between the resistance of 1.4850 and the support of 1.4770 while recording a high of 1.4837 and a low of 1.4644. Also here the momentum indicators are showing us that the pair is being traded in an overbought area, supported by the four-hour basis.

The yen is climbing past the weak dollar, especially as the U.S. economy released its job data, which showed that the job sector remains fragile despite improving signs in the nation. The USD/JPY pair is currently trading at 91.03 while posting a high of 91.43 and a low of 90.90. Over the one-hour basis, the Stochastic Oscillator is supporting the bearish trend while there is a support at 90.60 and a resistance at 91.75.