Royal currency declines after UK's GDP

By IBTimes Staff Reporter | December 22 2009 5:53 AM

The dollar is declining in markets on worries that the forecasted interest rate increases, regarding slight improvement in the U.S. economy, were overrated. Meanwhile, we see that the Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 77.99 recording a high of 78.13 and a low of 77.84. Also, data from the U.S. economy later on today is showing that existing homes sales' percentage wise for November will decline; therefore arousing worries that a recovery is taking longer to happen, since this was the core problem behind the downfall of the nation.

Sponsorship Link

Movements still remain weak in markets, due tothe Holidays and low trading taking place in markets. Currently, we see that the euro versus dollar pair is being traded at 1.4306, while recording a high of 1.4331 and a low of 1.4268. For the pair, we see there is a resistance at 1.4332 and a strong support at 1.4244.

The United Kingdom in the third quarter contracted to 0.2% from the preliminary 0.3%, which is worse than the projected contraction of 0.1%, as data disappointed investors. We saw the pound lose strength in markets versus the dollar since the pair is currently being traded at 1.6009 between the support of 1.5975 and the resistance of 1.6080, so far the pair recorded a high of 1.6099 and a low of 1.5994. On the other hand, momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area.

The USD/JPY pair is consolidating between the support of 91.04 and the resistance of 91.55 at 91.30, while recording a high of 91.47 and a low of 90.99. The momentum indicators on the one-hour charts are providing us with an upwards wave, yet trading remains low.