The Japanese yen and U.S. dollar drooped against higher-yielding currencies as Trichet's announcement yesterday boosted hopes in markets. President of the European Central Bank said default is not an issue for Greece which increased hopes that Greece will not need a help from the EU and IMF. The dollar index, which tracks the dollar movements versus a basket of major currencies, plummeted for the second day to 81.29 after touching strong resistance at 81.90 the previous day; however, it stopped declining when it got support at 81.30.
With regard to the euro-dollar pair, it is showing incline on the daily charts spurred by Trichet's announcement in the press conference following April's rate decision. Trichet mentioned that Greece may not need to get an EU and IMF support as it can solve its own problem. The pair rebounded from near two-week low against the green currency after Trichet's speech. Today, data released from Germany showed that exports rose the most in eight months, giving another impetus for the 16-nation currency. The pair is now trading at 1.3398 while recording a high of 1.3417 and a low of 1.3339, where the coming support is seen at 1.3350 and next resistance is at 1.3410.
As for the sterling-dollar pair, it rebounded for the second day to 1.5364 after breaching resistance at 1.5311 following today's data that showed that U.K. house prices soared, mirroring recovery in the housing sector. The BoE left both interest rate and APF quantity unchanged in April yesterday to boost the economy that is gathering momentum after expanding 0.4% in the fourth quarter. Today, the pair reached a high of 1.5391 and a low of 1.5265 while it is expected to move between support at 1.5245 and resistance at 1.5400.
Relative to the dollar-yen pair, it is moving upward on the daily charts as the upbeat announcements by Trichet damped demand on the yen as a refuge. The pair stopped its advance today when it hit cluster resistance at 93.76. Meanwhile, the pair is trading at 93.73 after reaching a high of 93.78 and a low of 93.30, whereas support is seen at 92.90 then 92.30 while resistance is at 94.00 then 94.25.