The US Dollar continued it’s downturn against majors which was seen earlier, where investors discarded the beating estimates GDP reading seen yesterday as they still believe that further downturn will take place in the economy from the protracted Credit Crisis.
The British Pound inclined today overcoming the losses seen yesterday against the US dollar; it also inclined against the Japanese Yen for the fourth consecutive day boosted by the ongoing expectations that the pace of contraction in Europe’s second largest economy us going to ease significantly through out this year. The GBP/JPY is currently trading at 157.89 levels after the pair recorded a high of 158.18 and a low of 156.92.
GBP/USD pair is currently trading at 1.6494 levels after recording a low of 1.6363 and a high of 1.6496 earlier today, the pair is now heading toward 1.6525 levels followed later on by a resistance at 1.6615 levels, as if breached the pair will have enough momentum to escalate higher heading toward set targets at 1.7200 levels.
The sixteen nation’s euro inclined for the second consecutive day breaching 1.400 levels to currently trade at 1.4067 levels after recording a low of 1.3981. The strength gained by the Euro boosted it to incline against the Japanese Yen for the second day on a row; the EUR/JPY is currently trading at 134.70 levels after recording a high of 134.92 and a low of 134.07 levels.
According to our analysis, the EUR/USD pair has the path open to incline higher, especially after the pair previously had rebounded from 1.3885 levels, where the pair faced a resistance at 1.4105 and 1.4170 levels.
Moreover, the US dollar plunged against the Japanese and Swiss Franc affected by the retrieve concerns in financial markets. The USD/CHF had plunged for the second day to currently trade at 1.0870 levels after recording a high of 1.0946 and a low of 1.0862, along with the USD/JPY trading at 95.75 levels after recording a high of 96.04 and a low of 95.60.