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Steady GDP supports sterling 

Published 05/25/2011, 07:40 AM
Updated 05/25/2011, 08:08 AM
USD/JPY
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The dollar fell after it rose today morning around its highest levels in eight weeks amid mounting debt concerns and jitters over the outlook for the recovery. USDIX is currently trading around 75.99 recording the intraday high of 76.25 and the low of 75.87.

The euro fell against the USD with fears dominating on investors that the high general debt might be contagious to other European countries especially that Greece is standing in front the choice of not being able to repay its debt which will force Greece request rescheduling its debt. The pair’s currently trading around 1.4068 recording the intraday high of 1.4106 and the low of 1.4015, technically the pair is expected to keep trending lower towards 1.3980 but it must stabilize below resistance levels at 1.4235.

The pound rose against the dollar to 1.6236, the highest in three years after fundamentals that assured the stability in growth levels in the UK during the first quarter, as the details of the GDP showed a significant improvement in exports and government spending, while the capital investments and the imports sharply declined. Services sector was fulfilling as the index showed, it was able to stabilize during the past three month ending in March. The pair is currently trading around 1.6229 recording the intraday high of 1.6236 and the low of 1.6131.

The USD/JPY is trading within a tight range, between the resistance level around 82.20 and the support level around 81.50, the pair must breach the support level to decrease or pass through the resistance level to be able to rise. The pair opened today’s trading at 81.94 recording the intraday high of 82.16 and the low of 81.77.

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