The Japanese yen and U.S. dollar pared their advance this against majors today after upbeat fundamentals showing that global economies are on the right track towards recovery. Trade surplus widened in New Zealand, Japanese exports soared for the fifth consecutive month in April, and the U.S. economy expanded 3.0% in the year ending March. Also, Man Group posted better than estimated full-year profit which gave support to risky assets at the expense of refuges.
The dollar index, which tracks the dollar movements versus a basket of major currencies, plummeted to 86.88 from the day's opening at 87.27, while it hit a low of 86.31 earlier today.
With regard to the euro-dollar pair, it rebounded on the daily after three consecutive sessions of decline after China's foreign exchange regulator denied news referring that China is reviewing its holdings of euro. However, the pair stopped its incline as it touched resistance at 1.2327, where the euro remains under pressure due the mounting debt concerns spreading across the euro area. The 1999-introduced is currently trading at 1.2333, while it reached a high of 1.2342 and a low of 1.2152. For the rest of the day, the pair is predicted to move between support and resistance at 1.2290 and 1.2420 respectively.
As for the sterling-dollar pair, it is showing incline on the daily charts, after moving sideways over the past seven sessions where the pair has been moving around 1.4334. Meanwhile, the pair is trading at around 1.4452, recorded a high of 1.4584 and a low of 1.4364 while it is expected to move between support at 1.4380 and resistance at 1.4625.
Relative to the dollar-yen pair, it is surged to 90.45 after the breach of support at 90.34. The upbeat data released today damped demand on the yen as a safe haven. Earlier today, the pair hit a high of 90.61 and a low of 89.79, whereas support is seen at 90.00 while resistance is at 91.25.