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Fundamental Currencies Comments

Currencies ahead of U.S. data

Mon, Feb 1 2010, 11:29 GMT
by ecPulse.com analysis team

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The U.S. dollar is mixed in markets ahead of a full economic day in the U.S. economy, while last week we saw the economy expand the most since six years, which supported the dollar to rise heavily in markets versus currencies. Currently the Dollar Index, which usually measures strength of the dollar versus six major currencies, and is currently traded at 79.39 while recording a high of 79.54 and a low of 79.30.  

The euro zone PMI manufacturing for January final reading at 52.4 from preliminary 52.0 as the sector expanded beating estimates, which was supported by Germany's manufacturing sector also expanding, increased the appeal of the euro versus the dollar especially since the dominate sectors support growth levels; meaning improved euro zone outlook. The EUR/USD is currently being traded at 1.3898 between the support of 1.3870 and the resistance of 1.3925 while recording a high of 1.3915 and a low of 1.3852. The volume indicator on the one-hour chart is showing us there is low volume in the markets. 

The pound weakened in markets, as investors were disappointed by mortgage approvals lower than the revised prior reading while also the net lending secured on dwellings worse than the estimates and previous readings. As both readings gave us a view at the housing sector and as they both declined, meant that still the housing sector was not recovered yet. The GBP/USD pair is currently traded at 1.5862 between the support of 1.5850 and the resistance of 1.6055, as momentum indicators on the one-hour charts show us that the pair is being traded in an oversold area. The pair so far recorded a high of 1.5977 and a low of 1.5849. 

For the dollar yen pair, we see there is volatility as the pair is currently traded at 90.20 above the support of 89.25 and below the resistance of 90.60; while recording a high of 90.46 and a low of 89.98, here the momentum indicators provide us with a downwards trend.

Published on  Mon, Feb 1 2010, 11:31 GMT

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