U.S. dollar loses strength vs. majors

Posted 08 October 2009 @ 10:04 am ET

The dollar depreciated in markets, as a result of optimism within markets; while we see that the dollar index, which shows the strength of the dollar versus a basked of currencies, dipping to its weakest level in 14 months. Also, as the U.S. economy released its first-time claims for jobless benefits, declining to the lowest since the first month of this year, thus further increasing optimism in markets. The ECB announced its interest rate, in which they agreed to leave steady at 1.00%; while Chairman of the central bank is worried that the volatility in markets concerning the euro probable impact on exports. The euro, after its climb, is currently seen losing ground as by his talks; therefore meaning he was not favoring the high euro, yet the labor market is projected to deteriorate lower than expected. The EUR/USD is being traded at 1.4743, while recording a high of 1.4799 and a low of 1.4681, the momentum indicators on the one-hour chart are providing us with a downwards trend, while the pair is traded between the support of 1.4711 and the resistance of 1.4774. The Bank of England today announced its rate decision, in which they decided to leave them steady at 0.50%; while they will continue with their APF program that is scheduled to be finished by next month. The pound, as a result of the announcement, climbed versus the dollar while the pair currently trades at 1.6064 between the support of 1.6017 and the resistance of 1.6095, while recording a high of 1.6092 and a low of 1.5946. The dollar versus yen is seen trading between the support of 88.20 and the resistance of 88.70 at 88.49. The pair recorded a high of 1.6092 and a low of 1.5946. The momentum indicators on the one-hour chart are showing us there is an upside trend.