The dollar is stuttering, the euro is regaining grounds and sterling is soaring! The dollar though is losing the gains against the yen while equities have indulged in a downside correction following yesterday’s rally.
The euro declined slightly settling for 1.2680 off highs set at 1.2736. Nonetheless, the euro returned to trim its losses trading above 1.2700 areas among 1.2655 support and 1.2760. Trading above 1.26 keeps the upside potential valid heading to test the resistance areas mentioned at least.
On the other hand, sterling surged versus the dollar today after the upbeat employment figures taking the pair from the lows recorded at 1.5167 to set the high of 1.5289. Sterling is still trading positively versus the dollar consolidating above 1.52 areas. The pair is currently among 1.5200 support and 1.5270 resistance and stability above 1.5170 will keep the upside move valid towards 1.53 resistance.
The dollar declined versus the Japanese during the day after yesterday’s gains parallel to equities decline. The pair declined from the highs at 89.11 towards 88.26 and still trading near its lows among the support at 88.00 and the resistance at 89.15 yet still unable to breach 89.15 which failed the expectations for a bullish move in our daily technical analysis, where trading below this level will preserve the bearish pressures on the pair.
Still the market will be awaiting the comments from the FEDs in the minutes of the last FOMC meeting. They did signal before downside pressures on the recovery from the European debt crisis, but any change and positive rhetoric will help the market sustain the positivity as otherwise we will see the market return to the blues once again on fears over outlook for the recovery.