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Currencies Update: The dollar at the lowest levels versus majors during the Asian session
Written by article default Thursday, 14 October 2010 07:40
Today, the dollar witnessed a sharp decline during the Asian session, reaching its lowest in 15 years against the Japanese currency, and its lowest level this month since January against the euro, on growing expectations the Fed's is going to ease policy further to support prices along with the purchase of government bonds to support economic growth, leading to a weaker dollar.The euro inclined against the dollar during the Asian session, trading near its highest in eight months since January. The pair recorded today a high of 1.4093 and a low of 1.3982, and now it trades around 1.4067. The daily momentum indicators show the pair within an overbought area, while the pair's movement ignored the momentum indicators' signs, and the pair continuing to upside movement.
The British pound rose against the dollar. Today, the pair recorded the highest at 1.5992 and the lowest at 1.5932, and now it trades around 1.5982, trying to reach the resistance 1.6000. The daily momentum indicators show the pair in an overbought area; however, the chances for the pair to rise remain valid.
Today, the Japanese yen against the dollar traded with a high volume, leading the pair to decline to the lowest level in 15 years, recording a high of 81.13 and a low of 81.71 and now it trades around 81.24. Momentum indicators show the pair in an oversold area which might support an upside movement for the pair.