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The greenback extends its strength in today’s Asian session

Published 05/25/2010, 03:12 AM

Majors continued to weaken against the US dollar during today’s Asian session as investors await the preliminary reading for the UK’s GDP for the first quarter expected to grow by 0.3% from the previous 0.2%. The dollar index traded between the highest of 86.81 and the lowest of 86.45. Now the index trades around the 86.75 level. The US will release today its S&P/CS house prices composite 20 for the month of March expected to fall to -0.3% from -0.1%, in addition to the consumer confidence for May expected to rise to 58.5 from 57.9.

The euro against the dollar traded during the Asian session between the highest of 1.2350 and the lowest at 1.282. Now the pair is trading around the 1.2298 level, between 1.2270 and 1.2345. Europe will release today its industrial new orders for the month of March expected to rise by 2.5% from the previous 1.5%. The hourly and four hours momentum indicators point that the pair is within an oversold area. As for the daily indicators they indicate the pair might rebound from an overbought area. The pair today may trade around 1.2470 if it breaches the 1.2410 levels, and may trade around 1.2140 if it breaches the 1.2195 levels.

The pound against the dollar traded between the highest of 1.4406 and the lowest of 1.4335. Now the pair is trading around the 1.4350 levels between 1.4345 and 1.4415. In addition to the GDP’s preliminary reading the UK will also release the BBA loans for house purchases which is expected to rise and the exports which are expected to be flat from the previous reading of 3.8%. The hourly and four hours momentum indicators point that the pair is within oversold area, as for the daily indicators show the pair is within an overbought area. The pair today may trade around 1.4530 if it breaches the 1.4460 levels, and may trade around 1.4250 if it breaches the 1.4295 levels.

The dollar against the yen traded between the highest of 90.30 and the lowest of 89.57. Now the pair is trading around 90.02 levels between 90.00 and 91.60. Japan will witness later in the day the release of Bank of Japan’s policy meeting minutes. The hourly and four hours momentum indicators point that the pair is within an oversold area, as for the daily indicators they show that the might witness a positive crossover within an oversold area. The pair today may trade around 92.80 if it breaches the 92.25 levels, and may trade around 89.00 if it breaches the 89.65 levels.

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