The dollar is the winner today, as there are anticipations that the U.S. economy is improving therefore meaning that the Federal Reserve Bank might exit stimulus measures before other major economies, from the upbeat speculations, boosted the dollar versus major currencies. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently surging while trading at 81.61 while recording a high of 81.83 and a low of 80.83.
As Fitch Ratings lowered Portugal's credit rating to 'AA-' aroused fears once again that the debt crisis in the Greece might spread throughout the euro zone therefore reducing the appeal of the euro. The euro dollar pair marked the lowest in 10-months of 1.3331. The euro was also pressured today after France sided with Germany on aiding Greece from the International Monetary Fund (IMF) instead of the European Union. Currently the pair is trading at 1.3371 between the support of 1.3285 and the resistance of 1.3395 while recording a high of 1.3493. The technical indicators on the daily charts are showing us that the pair is being traded in an oversold area.
Today in the UK, Chancellor of the Exchequer Alistair Darling released the annual budget report in which he promised to cut budget deficit by half within four years but mentioned that he could not reduce spending currently as it might weigh on the economic recovery. The pound has been depreciating against the dollar, yet after the annual budget report, we see that the royal currency is trying to gain strength. The pair is currently trading at 1.4933 above the support of 1.4860 and below the resistance of 1.4980. The pair so far recorded a low of 1.4875 and a high of 1.5034. Also here, the technical charts are showing us that the pair is traded in an oversold region.
The dollar yen pair is bearish as they are currently trading at 91.71 between the support of 90.95 and the resistance of 92.20, the momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area. The USD/JPY recorded a high of 91.95 and a low of 90.33 so far.