USD Under Pressure

The U.S dollar is currently falling as the anticipations of the interest rate hike by the Feds will be delayed as they feel the U.S economy did not revive much. Also it is continuing its slide from yesterday due to the contraction in the manufacturing sector. So investors are not very delighted by the hold off the Feds are taking from raising interest rates as they their confidence in the economy evaporates.

Also as the greenback is depreciating due to expectations that the meeting in Saudi Arabia regarding output of oil will not be increased as it said in the latest oil headlines according to Iranian officials while pressuring the dollar even more. The U.S calendar today lacks fundamentals.

The euro is gaining now on anticipations that the ECB might hint for a rise in interest rates next month in a speech given by Jean-Claude Trichet. The speculated interest rate hike of 25 basis points will show that Mr. Trichet is still taking a hawkish stand as he tries to battle inflation rates. The euro is currently climbing towards the resistance at 1.5603 as it is trading at 1.5597 while recording a high of 1.5599 and a low of 1.5491.

The U.K economy today also lacks fundamentals as the royal currency is gaining on the back of the weak U.S dollar. The pound successfully breached the resistance at 1.9740 while it is working itself up towards the next resistance at the level of 1.9755. The GBP/USD is currently trading at 1.9762 while recording a high of 1.9765 and a low of 1.9699.

As for the yen it is still gaining momentum to reach a support of 107.40 while like majors it is appreciating only due to the falling greenback. The USD/JPY is currently trading at 107.64 while recording a high of 108.02 and a low of 107.57.

Crown Forex

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