As the Federal Reserve Bank yesterday raised the rate charged to banks for direct loans or as known as the discount rate by a quarter point, marked the first hike since June 2006, the Feds taking this action supported the fact the U.S. economy might be the first out of major economies to pull out the stimulus measures which increased the appeal of the dollar. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 81.07 while recording a high of 81.33 and a low of 80.86.
From the euro zone today, they released data showing that the manufacturing sector continues to expand and this hinted that production output was improving therefore the upbeat data, supported the euro in the markets causing it to hold its gains against the dollar. The EUR/USD is currently traded at 1.3513 between the support of 1.3430 and the resistance of 1.3560 while recording a high of 1.3544 and a low of 1.3442.
The UK economy today released retail sales showing they fell heavily based on the monthly and yearly basis, as a result of the cold weather that took place in January, this therefore caused the pound to tumble in the markets versus the federal currency as investors were disappointed. The GBP/USD pair is traded at 1.5404 above the support of 1.5345 and the resistance of 1.5455 while recording a high of 1.5493 and a low of 1.5346.
Turning to the dollar yen pair, we see that they are consolidating between the support of 91.25 and the resistance of 92.50 at 91.72, the pair so far records a high of 92.07 and a low of 91.60. The momentum indicators on the one-hour charts provide us with a sideways wave.