Greenback Continues Rising

The greenback is still vigorous in the markets as major currencies continue to deteriorate further increasing the appeal of the dollar as investors believe there will be a future rate hike on the dollar while other currencies are all betting on a rate cut. The markets are pretty much calm today while the focus remains on the rising dollar.

As for the euro it remains weak in the markets as the EU Commission yesterday lowered their growth prospects while more investors are betting on a rate cut now in order to revive growth in the European economy. The ECB released their monthly report for September stating nothing new but that there is still upside risks to inflation and downside risks to growth yet they believe the 4.25% should stabilize prices in the economy. The EUR/USD is currently trading at 1.3897 while recording a high of 1.3987 and a low of 1.3892. We see a support at 1.3890 and a resistance at 1.3990.

Turning to the pound we see that it is deteriorating further as the state of the economy is further weighing on the sterling. The UK economy lacks major economic data as we already knew that the nation is at a peak of a recession while the royal currency finds no support from the current conditions. The GBP/USD is currently traded at 1.7450 between the support of 1.7390 and the resistance of 1.7525 while recording a high of 1.7535 and a low of 1.7446.

Currently in the markets we see unwinding of carry trades as investors sell high yielding assets and buy low yielding assets as the yen strengthens from this process. The USD/JPY is currently traded at 106.88 while recording a high of 107.57 and a low of 106.72. For the pair we see a support at 106.50 and a resistance at 107.15.

Crown Forex

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