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Irish debt woes pressure low yielding currencies
Written by article default Saturday, 20 November 2010 08:17
Major currencies declined in the Asian session today and the dollar managed to bolster its gains in early trading as investors remained jittery over the Irish debt crisis and the nation’s inability to contain the crisis. The prospects for a bailout for the nation continue to add mixed expectations for the market on whether the euro area’s recovery will stall and be threatened into falling into recession once again as the New Year unfolds with further austerity measures.The euro declined in the Asian session today after two consecutive sessions of gains. The pair is currently hovering around 1.3630 recording the low of 1.3607 and the high of 1.3659. The pair has support at 1.3540 while momentum indicators show oversold signals over daily basis yet provided negative signals over intraday four-hour basis.
For sterling, the royal currency returned to the bearishness after yesterday’s strong gains and currently trades around 1.6027. The pair so far recorded the high of 1.6052 and the low of 1.6011.
Moving to the Japanese yen, the pair traded in a tight range as the USDJPY hovers around 83.46 recording the high of 83.61 and the low of 83.37. Momentum indicators show heavy buying saturation over daily basis alongside downside signals over intraday four-hour basis.