Investor's are betting that the U.S. economy will recover at a quick pace than Europe as they are suffering from debt crisis which is choking their economic recovery, from the anticipations in marketsthat aresupporting the dollar past the euro. Also Federal Reserve Bank Chairman Ben Bernanke earlier this week stated that interest rates will be raised ahead of the labor sector improving fully. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 88.10 while recording a high of 88.38 and a low of 88.02.
France joins Germany in wanting to ban naked short selling oo sovereign credit-default swaps alongside some government debt and some equities, and as first this data had weakened the euro, the opposite of this is happening as it did not weigh on the euro heavily. The euro dollar pair is currently trading at 1.1964 above the support of 1.1910 and below the resistance of 1.1995 while recording a high of 1.1978 and a low of 1.1922. Over the one-hour basis, the technical charts are showing us that the pair is consolidating.
The UK today released its trade balance showing that the weakness of the pound did not support exports, as the European economy is still under major influence from the debt crisis which is sabotaging demand and weighing on trade between economies. The GBP/USD is currently trading at 1.4477 above the support of 1.4395 and below the resistance of 1.4540 while recording a high of 1.4491 and a low of 1.4393. The technical charts, here are showing us that the pair is being traded close to an overbought area as seen over the one-hour basis.
The dollar yen pair is trading in narrow ranges while currently trading at 91.37 between the support of 90.95 and the resistance of 91.90, posting a high of 91.60 and a low of 91.23. The volume indicator over the one-hour basis is showing that there is low trading in markets while the pair is trading close to the oversold region.