The dollar is sliding in markets versus major currencies, since there are anticipations in markets that the European officials will meet on the 11th of February to discuss new way of supporting Greece to narrow its budget deficit, which stood at 12.7% of last year's GDP; therefore reducing the appeal of the dollar in markets. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 80.13 while recording a high of 80.44 and a low of 79.99.
The euro is heavily gaining in markets versus the dollar as investors look forward to the meeting later on this week, therefore as they are optimistic about the outlook of Europe, causing them to turn to higher yielding assets; while selling lower yielding assets, which supports the euro in markets. The EUR/USD is currently traded at 1.3715 between the support of 1.3650 and the resistance of 1.3740 while recording a high of 1.3745 and a low of 1.3648. The one-hour charts show us there is low volume in markets as the pair trades close to an overbought area.
As the United Kingdom releases its trade balance, showing that the deficit widened further in December, meaning that exports were still weak as imports outpaced them; while the BoE Governor Mervyn King is depending on the weak pound to boost exports. The data disappointed investors therefore weighed on the pound's strength as the GBP/USD is traded at 1.5574 between the support of 1.5525 and the resistance of 1.5660. The pair so far recorded a low of 1.5567 and a high of 1.5645, while the momentum indicators here indicate that the pair is being traded in an oversold area, as the one-hour charts reveal.
From the optimism in markets; investors no longer need the yen as a refuge which therefore causes them to sell it. The USD/JPY is climbing while currently traded at 89.61 below the resistance of 89.90 and above the support of 88.90. The pair recorded a high of 89.72 and a low of 89.19 as they trade in an overbought area.
