The dollar is depreciating in the markets on speculations that company earnings are upbeat and this gives more evidence that the worst of this global recession is over which reduces the appeal of the dollar versus major currencies. When investors have confidence they tend to have increased risk appetite as they turn to higher yielding assets which causes the federal currency to tumble.
The euro zone today lacked major economic data while the euro against the greenback is being traded at 1.4934 between the support of 1.4906 and the resistance of 1.4967 while the pair records a high of 1.4964 and a low of 1.4887. The momentum indicators on the one-hour chart are providing us with a downwards trend as the pair could not breach the physiological level of 1.50 so far today.
The Bank of England released its minutes showing that the vote on leaving interest rates steady at 0.5 percent and the quantitative easing methods were unanimous. The Governor of the central bank Mervyn King wants to break up financial institutions and split the riskier operations from secure industries, while he stated that Britons should get ready for interest rate hikes. Based on King's plans and outlook for rates, we see that the pound is rising as investors look forward to the outlook of the
Turning to the yen we see that it is losing ground versus the dollar as the pair trades at 90.88 while recording a high of 90.99 and a low of 90.47. For the USD/JPY we see there is a support at 90.64 and a resistance at 91.04. The momentum indicators on the one-hour chart are providing us with an upwards channel.