Today the market is fluctuating with ease amid the lack of fundamentals; the dollar is still hovering around its weakest in three months against the euro and against the six major currencies tracked by the dollar index greenback is still around its weakest in five months.
The economic fundamentals are reflecting broad weakness in the US economy, especially after the abysmal jobs reports last Friday. The economy returned to shedding jobs after a temporary recovery, where in July the economy lost an aggregate 131,000 jobs. Still the market is focused on the FOMC meeting tomorrow where the market is anticipating a stronger stance from the Feds regarding further steps to be adopted to aid the economy, especially as they said last meeting that they stand ready to support the economic recovery.
The EURUSD pair is trading above the 1.3250 resistance after it managed to end Friday above this level. With the lack of economic fundamentals, the pair is trading with a sideways range slightly biased to the downside opening at 1.3290 recording the high at 1.3307 and the low at 1.3267 and currently trading around 1.3274.
As for sterling, it is also trading around the critical resistance of 1.60 versus the dollar and also tending to trade sideways; the pair so far recorded a high of 1.5993 and a low of 1.5929 after opening around 1.5960 and currently hovering around those levels.
Regarding the dollar versus the Japanese yen, the latter suffered a flow of weak trade data alongside Goldman Sachs downside revision to Japanese growth expectations. The yen weakened and sent the pair higher as the pair aims at testing 85.70 resistance areas over four-hour basis supported by momentum positivity as the pair might reach higher targeting 86.35 areas.