Yesterday's session reverses, where we currently see the dollar reverse its gains versus major currencies, led from higher stock markets. Once again there is optimism in the markets, as a result of improved profits from banks; therefore encouraging investors to buy higher yielding assets, while selling lower yielding assets which weigh on the dollar's strength, causing it to depreciate in markets.
The euro is gaining strong momentum versus the federal currency, as momentum indicators on the one-hour charts are revealing that the pair is currently traded in an overbought area. The EUR/USD is currently traded at 1.4756, while recording a high of 1.4772 and a low of 1.4701. For the pair we see there is a support at 1.4696 and a resistance at 1.4766, while the volumes indicator also on the one-hour chart is showing us low volume in markets.
The United Kingdom released its service sector; showing that the expansion continued, this sector represents 75% of the GDP and supports the pound to surge versus the dollar, as investors look forward to the outlook of the economy. The GBP/USD is currently trading at 1.6528, while recording a high of 1.6543 and a low of 1.6399 as the pair climbs to the resistance of 1.6615. For the pair we see there is a support at 1.6472, while momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area.
The increased risk appetite in markets is reducing the demand for the yen, since it is considered a lower yielding assets, while investors are more interested in higher yielding assets. As a result, we see the yen lose grounds against the dollar. The USD/JPY is being traded at 90.90, while recording a high of 90.95 and a low of 90.04, as the pair climbs towards the resistance of 91.04.
