Today, the Federal Reserve Bank will release the meeting minutes in which helps the markets understand the monetary policy decision of leaving interest rates near zero. If the minutes mention new information to markets, will determine the trend of the dollar as currently we see the Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 86.63 while recording a high of 87.45 and a low of 86.59.
As an official from the International Monetary Fund (IMF) said the as the euro dollar pair fell to the lowest in four years, might boost the euro zone's exports, and as a result of this, the euro rebounded from the low of 1.2141 to so far hitting a high of 1.2327. The EUR/USD pair is currently trading at 1.2320 between the support of 1.2160 and the resistance of 1.2370. The momentum indicators are showing us over the daily basis, that the pair is being traded in an oversold area. The euro had depreciated heavily today after Germany announced it was banning naked short selling which aroused fears that the debit crisis in Europe might worsen.
The pound dollar pair has reversed its roll rising from the 13-month low following the trend of the euro, while it also is trading in an oversold area as the pound remains under pressure from the outlook of the UK especially as they are dealing with a swelled budget. An emergency spending cut meeting will take place on the 22nd of June. The GBP/USD is currently trading at 1.4331 above the support of 1.4250 and below the resistance of 1.4405 while recording a high of 1.4370 and a low of 1.4235. Over the one-hour basis, the Stochastic Oscillator is supporting the upwards wave currently witnessed.
Turning to the dollar yen pair we see that it is plummeting as investors are currently buying higher yielding currencies versus lower yielding assets, as higher exports in euro zone would support a global economic recovery, and this therefore restored some optimism in markets. The pair is currently trading at 91.78 between the support of 91.00 and the resistance of 92.30 while recording a high of 92.24 and a low of 91.05.