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Currencies Update: Gains for the yen after FOMC
Written by article default Thursday, 04 November 2010 10:44
Majors witnesses limited movements after yesterday’s volatility when the Feds decided to adopt a new round of quantitative easing measures and buy government bonds. The yen rose against the dollar and other majors on expectations the Japanese exporting companies bought the yen after it fell last week.The euro fell slightly against the dollar during today’s Asian session, trading around the level 1.4120, recording a high of 1.4142 and a low of 1.4101. Breaking the level 1.4100 during yesterday may limit the pair’s movement for a while as markets await the ECB rate decision and Trichet press conference later in the day. The daily and four hours momentum indicators show the pair in an overbought area.
The pound rose against the dollar during today recording a high of 1.3132 and a low of 1.6087. The pound now trades around 1.6116 and faces a resistance at 1.6180. The daily and four hours momentum indicators show the pair in an overbought area.
The yen fell slightly against the dollar recording a low of 80.74 and a high of 81.20. The pair now trades around 80.83, facing a support at 80.40. The daily momentum indicators show give buying signs, while the four hours indicators tend to give selling signs.