As company earnings are worse than market expectations spread negative sentiment in the markets therefore caused investors to avoid higher yielding assets which caused major currencies and the stock markets to tumble. As majors tumbled, we saw the dollar on the other hand gain momentum while the Dollar Index, which measures strength of the dollar versus six major currencies, is currently traded at 80.75, while recording a high of 80.85 and a low of 80.40.
Although the euro zone today lacked major economic data, yet the euro is depreciating in the markets against the federal currency, from the negative sentiment that is causing investors to continue selling higher yielding currencies. The EUR/USD is being traded at 1.3543 above the support of 1.3485 and below the resistance of 1.3605 while recording a high of 1.3635 and a low of 1.3536, on the one-hour charts, the momentum indicators reveal that the pair is traded in an oversold area while there is low volume in the markets.
More dead beat data we saw today, as the United Kingdom released its trade deficit showing that it widened the most in 17 months, therefore added to the woes in the markets regarding swelling budget deficits. The negative data weighed on the pound further while we saw the GBP/USD trading at 1.4965 between the support of 1.4900 and the resistance of 1.4990. The pair so far recorded a high of 1.5052 and a low of 1.4934 while the momentum indicators on the one-hour charts are showing that the pair is trading in an oversold area.
The dollar yen pair is declining while the yen is strong as a result of anticipations that investors are bringing profits back home, while also the slipping Asian stock markets boosted the appeal of the yen as a safe-haven asset. The pair is currently traded at 89.79 above the support of 89.55 and below the resistance of 90.15; so far the pair recorded a high of 1.3635 and a low of 1.3536.