The attention today is on the European finance ministers meeting in Brussels to discuss if the provided aidby the EU and IMF will be able to tame the deficit in the euro zone or not. The dollar is mixed between majors, climbing against the pound yetretreating versus the euro. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently trading at 86.30 while recording a high of 87.05 and a low of 86.18.
The euro dollar pair fell to the lowest in four years as investors sold the euro in panic as they doubtedthat governments in the euro zone are going to be able to contain the debt crisis, or was it going to spread further to other economies. Greece, Spain, Portugal and lastly Italy today are using austerity measures to reduce spending and narrow deficit. The EUR/USD is currently trading at 1.2369 between the support of 1.2235 and the resistance of 1.2385, for the pair we see that the lowest was at 1.2232 while hitting a high of 1.2376. The daily charts show that the pair is being traded in an oversold area.
Moreover, today the British Chancellor of the Exchequer Alistair Darling set out a timetable for the government of the UK to make a plan to begin saving as a way to tame their deficit which stood nearly at 12% of last year's GDP. Also after a report that showed that houses in London fell for the first time this year, we saw the pound tumble to a 13-month low against the dollar. The pair is currently trading at 1.4468 above the support of 1.4340 and below the resistance of 1.4470. So far, the GBP/USD hit a high of 1.4545 before hitting a low of 1.4249, as investors are worried from the outlook of the UK.
The dollar yen pair is on the rise, as the pair is currently trading at 92.59 while recording a high of 92.69 and a low of 91.74, the technical charts are providing us with a downward trend on the daily charts, yet for the pair we see a support at 91.80 and a resistance at 93.30.