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Currencies Update: Tight ranges during the Asian session as the dollar remain near an 8 months low
Written by article default Monday, 11 October 2010 07:43
The greenback continued to trade near an 8 months low against the euro on growing believes the feds are on their way to buy more government bonds, especially since there is a number of Fed officials scheduled to talk in the next few days. There is a banking holiday in the US and Canada today which will make volume lower than usual.The euro against the dollar moved in tight ranges above the level 1.3930 during the Asian session as volume was low. The pair recorded today a high of 1.3998 and a low of 1.3958, and now it trades around 1.3973. The daily momentum indicators show the pair within an overbought area, while the four hours indicators show the pair within and oversold area.
The pound fell slightly against the dollar reaching the 1.5940 level. The pair recorded today a high of 1.5961 and a low of 1.5926, and now it trades around 1.5940. The daily momentum indicators show the pair in an overbought area; however, the chances for the pair to rise remain valid.
The yen fell against the dollar as the Japanese currency reached a 15-year high, recording a high of 82.13 and a low of 81.81, and now it trades around 82.01. Momentum indicators show the pair in an oversold area, which favors another upside movement.