The greenback traded low versus the major currencies
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.4960 1.4910 1.4865 | 108.00 107.45 106.15 | 1.8955 1.8795 1.8640 | 1.1060 1.0925 1.0900 |
Support | 1.4625 1.4540 1.4440 | 105.15 104.55 104.00 | 1.8475 1.8440 1.8385 | 1.0700 1.0610 1.0605 |
The greenback traded very low against the euro on concerns that the U.S. government proposal to buy $700 billion of troubled assets will hit confidence in the nation's finances. The greenback traded low versus the major currencies as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. Also weighing on the dollar is the U.S. report this week that may show home sales fell, adding to the case for the Federal Reserve to cut interest rates. The EUR/USD is currently trading at $1.4750 as of 7:51am, GMT.
The pound was little changed against the dollar before an industry report that will show whether U.K. mortgage approvals picked up in August. House prices slid a fourth month in September, Rightmove Plc, Britain's most-used property Web site, said yesterday. The average asking price for a home fell 1 percent from August. Banks granted 22,448 loans for house purchase in July, down 65 percent from a year earlier, the British Bankers' Association said Aug. 26. ``The numbers are likely to confirm mortgage financing has dried up in the U.K.,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi Ltd. ``The economic fundamentals are still extremely negative for the pound.'' The GBP/USD is currently trading at $1.8525 as of 8:12am, GMT.