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Dollar rise on retail sales

Published 12/14/2010, 10:47 AM
Updated 12/14/2010, 10:48 AM

Inflation reports from the British economy showed an unexpected rise in prices, putting more pressure on policy makers to expand the APF program to help boost the economy, causing the dollar to drop against majors earlier today.

Nonetheless, the dollar rebounded ahead of the last FOMC rate decision this year, on better than expected retail sales. The dollar traded near the opening levels on the US dollar index which tracks the performance of the dollar against six major currencies.

On the US dollar index, the dollar rose to trade at 79.47 after opening at 79.34 where it depreciated to a low of 78.83 before setting a high of 79.49.

The euro slid to trade at 1.3376 in attempt to breach the support at 1.3350 and stabilize below it to extend its decline. The pair opened trading at 1.3389 while setting a high of 1.3497 and a low of 1.3360. the trading range for today is set among the key support mentioned above and the key resistance at 1.3505.

The pound traded lower, at 1.5765, while setting a high of 1.5910 and a low of 1.5737.

The pair rebounded from the resistance at 1.5865 where it depreciated, targeting the strong support at 1.5550 which if breached, would pave the path of the pair to target levels at 1.5480.

As for the Yen, the pair traded higher at 83.54 while setting a high of 83.65 and a low of 82.82, compared with the opening levels of 83.37.

Today’s trading range is bounded by the support at 83.00 and the resistance at 84.40.


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