The dollarfell after Federal Reserve Bank officials yesterday pledged to leave interest rate near zero, therefore increasing demand on higher-yielding currencies, which caused investors to sell the dollar against major currencies. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently traded at 79.57 while recording a high of 79.74 and a low of 79.51.
The euro is extending its incline against the federal currency as the EU finance ministers said they will provide emergency loans to Greece to help them narrow their budget deficit, details of the plan were not provided. The EUR/USD on the four-hour charts is trading in an overbought area as supported by the momentum indicators while the pair is currently trading at 1.3783 between the support of 1.3715 and the resistance of 1.3830. The pair is bullish while so far recorded a high of 1.3817 and a low of 1.3758.
The Bank of England released its minutes today showing that the vote was unanimous on the pause of APF and interest rates at 0.50%, also from the UK today, we saw unemployment rate stagnate at 7.8% while jobless claims fell at the fastest rate since 1997. The upbeat employment data boosted the pound versus the dollar, while the pair is currently trading at 1.5355 below the resistance of 1.5415 and above the support of 1.5265. The GBP/USD so far marked a high of 1.5381 and a low of 1.5208, while the momentum indicators here also are showing us that the pair is trading in an overbought area, on the one-hour charts.
The Bank of Japan we saw double the amount in the loan program which is set towards taming deflation which therefore panicked investors away from the yen causing it to tumble against the dollar. The USD/JPY pair is currently trading at 90.55 between the support of 90.00 and resistance of 91.20 while recording a high of 90.70 and a low of 90.02. The technical charts here also show us that the pair is being traded in an overbought area, as supported by the one and four-hour charts.