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Dollar declines ahead of U.S. data

Published 04/30/2010, 08:05 AM
Updated 04/30/2010, 08:08 AM
EUR/USD
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GBP/USD
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The dollar is declining ahead of the U.S. data especially as they are supposed to release first quarter advanced reading GDP in which expectations show growth will narrow to 3.3% from the current 5.6%. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 81.76 while recording a high of 82.08 and a low of 81.65. 

The euro continued its climb in the markets against the dollar after the European Commission President Jose Barroso stated that the he is sure that the package aided provided to Greece will be done "in days". As a result of this we saw that the euro was supported in the markets as the EUR/USD is currently trading at 1.3322 between the support of 1.3265 and the resistance of 1.3380 while recording a high of 1.3334 and a low of 1.3222. 

The pound also rallied in the markets as yesterday, UK opposition leader David Cameron succeeded in winning a debate, therefore hinting that the Conservatives might be the next new government to be elected on the May 6 elections therefore calming the tension around the pound. The GBP/USD is currently trading at 1.5334 above the support of 1.5270 and below the resistance of 1.5395 while recording a high of 1.5389 and a low of 1.5311. The momentum indicators are showing that the pair is being traded close to an overbought area on the four-hour charts. 

As a result of the improved earnings from companies, we saw that investors are currently buying higher yielding assets and selling lower yielding assets which is weighing on the strength of the yen. The dollar yen pair is currently trading at 94.45 between the support of 93.60 and the resistance of 95.55 while recording a high of 94.58 and a low of 93.87.

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