Federal Reserve Bank Chairman Ben Bernanke said that the U.S. economy is recovering at a moderate pace, boosted the dollar upwards, yet not enough for it to continue its climb today. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 88.40 while recording a high of 88.58 and a low of 88.11.
For the euro dollar pair, we see the pair is consolidating over the four-hour basis. Germany today released its trade balance showing that exports plunged despite the weakened euro in the markets, the downbeat data which was worse than estimates, weighed on the euro strength further. The EUR/USD is currently trading at 1.1925 between the support of 1.1845 and the resistance of 1.2010 while posting a high of 1.9181 and a low of 1.1900.
After Fitch Ratings stated that the United Kingdom is facing a debt crisis and needs to rush making plans for taming the deficit, which for the fiscal year ending in March stood at 11.1% of GDP. The statement shook the pound even further causing it to tumble more into misery as investors became worried about the fiscal position of the nation curbing economic growth. The pound dollar pair is currently trading at 1.4409 while recording a high of 1.4527 and a low of 1.4371. Over the one-hour basis we see that the pair is being traded in an oversold area while there is a support at 1.4335 and a resistance at 1.4495.
The yen is starting to gain ground especially after Fitch Ratings statement which caused investors once again to turn to safe-haven currencies which supported the rise of the yen. The USD/JPY is currently trading at 91.44 above the support of 90.90 and below the resistance of 91.90 while recording a high of 91.91 and a low of 91.21.