The U.S. economy emerged out of the recession after the release of the GDP data for the third quarter which beat median forecasts. Optimism prevailed in markets after the upbeat figures, encouraging investors to buy risky assets. The dollar and yen slipped after the news, where the dollar index plunged to 76.43 from the opening at 76.13.
As regards to the euro-dollar pair, it is inclining on the daily and 4-hour charts. The euro zone released its confidence report for October showing an incline to 13-month high. The euro bounced after the news and it surged further after the U.S. data which enhanced demand on higher-yielding currencies. Meanwhile, the euro is traded at 1.4780 recording a high of 1.4803 and low of 1.4682, where the pair is supported by 1.4765 then faces the coming resistance of 1.4825.
As for the sterling-dollar pair, it is showing an incline for the fourth straight day on the daily charts. Also, the pair is inclining on the 4-hour and 1-hour charts. The data released today in the U.K. showed a slight improvement; however, the pound was boosted by the U.S. data where the pair pared most of last Friday's losses. So far, the pound is trading at 1.6549 setting a high of 1.6578 and a low of 1.6336; while the coming support for the pair is seen at 1.6530 and the resistance is spotted at 1.6578.
With regard to the dollar-yen pair, it is showing a clear upside tendency over daily and 4-hour basis. The pair reflects the optimism in markets after the U.S. news which damped demand on the yen. Now, the pair is trading around 91.23 after hitting a high of 91.45 and a low of 90.22; while the pair is currently facing the coming support level at 91.06, while the resistance is spotted at 91.45.