Today, optimism is resuming in markets as the ECB said that it will continue to buy government bonds as a way to keep pumping liquidity in markets, as a result of this, investors' risk appetite increased which caused them to turn to higher yielding assets versus lower yielding assets. The dollar is seen inclining slightly as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 87.08 while recording a high of 87.24 and a low of 86.93.
The euro dollar pair is consolidating as the euro zone lacked major economic data. The worries about the debt crisis in Europe spreading and curbing economic growth is easing from the markets therefore investors are once again turning to the euro, causing it rebound from the four-year low. The pair is currently trading at 1.2115 while recording a high of 1.2148 and a low of 1.2089, for the pair we see there is a support at 1.2045 and a low of 1.2150. Over the four-hour basis we see that the pair is being traded close to an overbought area, yet there are slight movements as the technical charts are showing us.
The United Kingdom today released its industrial and manufacturing production, showing that they fell which right away weighed on the pound, especially as it was worse than market expectations and therefore meant that companies production output was still negatively affected by the curtailed demand. The downbeat data caused the pound dollar pair to decline while currently trading at 1.4668 above the support of 1.4605 and below the resistance of 1.4730, so far the pair hit a low of 1.4651 and a high of 1.4758.
Turning to the yen, we see that it is tumbling in markets as investors are more interested in higher yielding assets, and as the stock markets rise, reduces the appeal of the yen as a refuge against the European debt crisis. The USD/JPY is currently trading at 91.60 between the support of 90.90 and the resistance of 92.65 while recording a high of 91.74 and a low of 91.25.