The dollar is currently rallying in the markets ahead of the U.S. jobs report scheduled tomorrow while already job data this week has been bright supporting the fact that the job sector is improving hinting that the worst of this recession is over for the U.S. economy. Also the dollar is climbing as currently investors are avoiding higher yielding currencies which therefore support the dollar. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently inclining trading at 84.57 while recording a high of 84.60 and a low of 83.91.
The euro resumes its depreciation against the dollar, currently trading around the lowest levels witnessed in nearly 14 months as the European Central Bank (ECB) continued to leave interest rates at record low of 1%. Following the decision of the ECB, Jean-Claude Trichet spoke saying that the current interest rates are appropriate, while the rest of the speech basically repeated his previous speeches. The euro dollar pair is currently trading at 1.2707 above the support of 1.2615 and below the resistance of 1.2755 while recording a high of 1.2856 and a low of 1.2703. The daily charts are showing us that the pair is being traded in an oversold area.
The pound is tumbling ahead of the elections, marking the fifth consecutive decline on worries that these elections will not have a parliamentary majority, therefore weakening the government's position to narrow budget deficit. Also the UK services sector which represents 75% of GDP unexpectedly witnessed its expansion narrow as a result of the volcanic ash of Iceland causing planes to not take off. The pound dollar from all the ongoing political tensions is currently trading at 1.5038 between the support of 1.5000 and the resistance of 1.5075 while recording a high of 1.5146 and a low of 1.5010. Also here the technical charts are showing us that the pair is being traded in an oversold area.
Turning to the yen, we see that it is a winner in the markets gaining from the negative sentiment as currently investors are more interested in lower-yielding currencies, as we see the USD/JPY pair currently trading at 93.49 above the support of 92.90 and the resistance of 94.00 while recording a high of 93.97 and a low of 93.27.