The yen continued its advance against majors today, despite the improvement in U.S. durable goods excluding autos and jobless claims, on debt woes spreading in Europe. The downbeat data released earlier this week along with the FED announcements yesterday raised concerns that debt crisis will curtail recovery.
EU officials are exerting super efforts to contain the debt woes and regain financial stability. However, the European Union may postpone the release of new regulation controlling the amount of information unveiled to managers of hedge funds and private equity firms. G20 leaders will meet this week end to discuss global trading imbalances as they seek to unify their policies.
On the other hand, the U.S. dollar fell against a basket of major currencies despite the upbeat U.S. data. The dollar index, which tracks the dollar movements versus a basket of major currencies, dropped to 85.72 after hitting resistance at 85.96, while it opened the day at 85.81.
With regard to the euro-dollar pair, it is steady on the daily charts traded near 1.2330 level that the pair has been traded around this week. Still, the euro remains under pressure due to the looming debt woes that is threatening growth prospects in the region. Meanwhile, the pair is trading at 1.2318 while recording a high of 1.2350 and a low of 1.2259. For the rest of the day, the pair is predicted to move between support and resistance at 1.2280 and 1.2400 respectively.
As for the sterling-dollar pair, it rallied for the third day after the breach of strong resistance at 1.4856 yesterday which paved the way for the pair to incline to 1.4991, where the pair is currently traded. The pound is continuing its rise since Osborne had announced additional expenditure cuts of 30 billion pounds a year by 2014-15 on June 22 in his emergency budget which boosted hopes the economy will cut its huge debt. Earlier today, the pair recorded a high of 1.5011 and a low of 1.4929, while it is expected to move between support at 1.4885 and resistance at 1.45040.
Relative to the dollar-yen pair, it is moving south to continue its fall for the third day but the pair has stopped its fall as it got support at 89.27. The pair is currently trading at 89.34, recording a high of 89.97 and a low of 89.23, whereas support is seen at 88.45 while resistance is at 90.20.