The U.S. economy released its University of Michigan confidence which we saw decline to 66.0 from the previous 70.6 and worse than the expected 71.0, this data did not support the dollar as overall we see the dollar lose strength in the markets as a result of anticipations hinting that global recovery is beginning to occur. The speculations weighed on the dollar as investors bought higher yielding currencies versus lower yielding currencies.
The euro zone released its third quarter GDP, showing that the 16-nation region expanded to 0.4% and this gave more evidence that a global recovery is taking place. The EUR/USD pair is being traded at 1.4847 between the support of 1.4790 and the resistance of 1.4893 while recording a high of 1.4900 and a low of 1.4823. The momentum indicators on the four-hour charts are showing us that the pair is being traded close to an oversold area while they are providing us with a upwards trend on the one-hour charts.
The pound remains firm versus the dollar especially as British Airways Plc agreed to merge with Iberia Lineas Aereas de Espana SA arousing anticipations that the United Kingdom is improving. Although the UK today lacked major economic data yet investors bought the pound as they looked forward to more merging taking place, the GDP/USD pair could not breach successfully the resistance of 1.6691 as it is currently traded at 1.6645 above the support of 1.6610 while recording a high of 1.6701 and a low of 1.6573.
The dollar yen pair is being traded in an oversold area while the yen is rising versus the dollar as the pair is currently trading at 89.65 while recording a high of 90.40 and a low of 89.53.