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Currencies Update: Lack of confidence is what brings losses to the financial markets
Written by article default Thursday, 25 November 2010 11:07
The euro and other major currencies continued their decline against the dollar during today’s trading session as the latest economic and political developments around the world (including the Irish credit crisis and the conflict between the two Koreas) triggered fears among the market participants who lost their appetite for risk and looked for safer assets.The euro fell considerably during today’s Asian session and now it trades around 1.3323, recording a high of 1.3357 and a low of 1.3306. Breaking the level 1.3360 helped the pair extend its downside movement, yet the daily and four hours momentum indicators show the pair in an oversold area, which might limit the euro’s decline.
The pound continued to fall against the dollar for the fifth consecutive session, trading around 1.5756, after recording a high of 1.5788 and a low of 1.5742. Breaking the support level 1.5800 gave the pair additional momentum to move to the downside. The daily and four hours momentum indicators show the pair in an oversold area which might limit the pair’s decline.
The yen fell slightly against the dollar trading around the level 83.46, recording a high of 83.54 and a low of 83.39. the momentum indicators show neutrality yet with some downside bias on the four hours chart.