Stable movements are seen across the market as it is the end of the week where positions are usually closed, while at the same time investors are waiting for the University of Michigan to release its confidence survey in which expectations show will rise, and this will either give a dollar boost in the markets as investors start to gain confidence that conditions are improving in the nation, or depreciate if the reading is worse than estimates.
The euro zone today released its headline inflation figures as on the year prices plummeted close to a 13-year low, which meant that the ECB will take time before reversing its monetary easing; especially as spare capacity is already high as the economy stabilizes from the deep recession. The data weighed slightly on the euro as it is declining versus the dollar where the pair is trading at 1.4270 while recording a high of 1.4305 and a low of 1.4250. For the pair we see a support at 1.4243 and a resistance at 1.4312.
In the UK economy we saw that there were fewer homes being repossessed in the second quarter and this further supported the fact that the housing sector is bottoming out. The upbeat data supported the pound to climb in the markets versus the dollar as the pair currently trades around 1.6585, while recording a high of 1.6607 and a low of 1.6483. Momentum indicators on one-hour charts are showing that there is a sideways wave while we can spot the coming resistance at 1.6618 and the support at 1.6518.
The yen is surging past the dollar as Japanese investors are expected to bring back home their returns from U.S treasuries redemption and coupon payments. The USD/JPY is trading around 94.81 between the support of 94.51 and the resistance of 95.16 while recording a high of 95.45 and a low of 94.57 throughout today's trading session.