The dollar is mixed in the markets as from the euro zone there was bright data while in the UK, the data was dull as scared investors away from the royal currency. Today the U.S. economy following other major economies is going to be releasing important data regarding the housing sector as it is projection that existing home sales will climb and this hints that the housing market is bottoming out, and since the markets are aware that this sector was behind the global recession, the data is watched closely and carefully.
It was a major day in the euro zone as the dominate sectors that fuel economic growth expanded and this gave hints that the worst of this global recession is over. The upbeat data helped the euro hold on to its strength versus the greenback as it currently trades at 1.5042 between the support which at the same time is the physiological level of 1.50 and the resistance of 1.5051. The pair so far recorded a high of 1.5059 and a low of 1.4990. The momentum indicators on the one-hour chart are showing us that the pair is trading close to an overbought area.
The pound tumbled heavily in the markets as the United Kingdom released its GDP for the third quarter revealing that the nation contracted 0.4% from the second quarter contraction of 0.6%, the markets were anticipating an expansion of 0.2 percent. As investors were disappointed from the data as hopes were that the nation was going to improve during the third quarter, they frantically sold the pound. The GBP/USD is being traded at 1.6435 between the support of 1.6380 and the resistance of 1.6531 while the pair recorded a high of 1.6692 and a low of 1.6412. The momentum indicators on the four-hour chart we see that it is providing us with a downwards trend.
The dollar yen pair we see is climbing as investors are looking forward to the bright data that is to be released later on from the U.S. economy. The USD/JPY is currently trading at 91.66 between the support of 91.55 and the resistance of 91.90 while recording a high of 91.91 and a low of 91.27.