The building permits in the U.S. economy today were released which showed that they tumbled heavily worse than estimates and this weighed on the strength of the dollar. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 85.94 while recording a high of 86.55 and a low of 85.90.
The euro dollar pair rebounded from the four-year low as concerns regarding the debt crisis weighing on growth levels in the euro zone eased therefore we began to see the euro rise. Also as the EU provided Greece with their first installment of the 110 billion euros worth 14.5 billion euros, supported the pair further as currently it is trading at 1.2415 between the support of 1.2310 and the resistance of 1.2500 while recording a high of 1.2444 and a low of 1.2312. Over the one-hour basis, the charts are showing us that the pair is being near an overbought area.
Today the UK economy released its inflation data showing that CPI yearly rallied to 3.7% forcing Governor of the BoE Mervyn King to write a letter to George Osborne explaining why inflation was above the government's limit. Although inflation spiked in the nation, yet it did not affect the currency as currently the focus is on the UK widened deficit, as a plan was announced yesterday to narrow the deficit. The GBP/USD is currently trading at 1.4482 between the support of 1.4405 and the resistance of 1.4540 while recording a high of 1.4517 and a low of 1.4404. The daily charts are showing us that the pair is being traded in an oversold area.
Turning to the USD/JPY pair, we that that the pair climbing while currently trading at 92.75 between the support of 92.30 and the resistance of 93.30 while recording a high of 92.30 and a low of 93.30. Currently investors are more interested in the higher yielding assets from the slight positive sentiment seen in markets today.