Once again, the dollar is on the rise, marking a weekly incline while today the U.S. economy is going to release a confidence survey in which expectations show will improve, therefore supporting boosting the dollar further. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently rising trading at 85.71 while recording a high of 85.86 and a low of 85.20.
The euro resumed its decline versus the dollar in the markets marking the lowest level in 14 months on extended worries that the EU and IMF aid worth nearly $1 trillion to the euro zone will not be able to tame the deficit that is threatening the outlook of the nation. The euro fell nearly 1.7% this week against the dollar as currently the pair is trading at 1.2464 between the support of 1.2385 and the resistance of 1.2510 while recording a high of 1.2575 and a low of 1.2430. The technical charts are indicating that the pair is being traded in an oversold area over one-hour basis.
The pound depreciated against the federal currency as ex-policymaker David Blanchflower projects that the UK's alliance would crumple at the end of the year while there are anticipations that the BoE will leave interest rates at record low for a while. Today the United Kingdom lacked major economic data, yet the pound is resuming its decline, while fears in the nation remain if the government will actually be able to cut the deficit without weighing on growth levels or not. The GBP/USD is currently trading at 1.4520 above the support of 1.4435 and below the resistance of 1.4565 while recording a high of 1.4638 and a low of 1.4493. The technical charts also here show us that the pair is being traded in an oversold area.
Now turning to the dollar yen pair, we see that it declining on the daily charts as a result of the pessimism in markets which keeps investors more interested in lower yielding currencies instead of higher yielding currencies, and this therefore gives ground for the yen to rise. The USD/JPY is currently trading at 92.41 between the support of 91.80 and the resistance of 93.30 while so far posting a high of 93.08 and a low of 92.24.