Yen advances on fears in markets
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Monday, August 30, 2010
, Posted by Usman Ali Minhas at 8:17 AM
The Japanese yen strengthened against majors on jitters in markets that global recovery may falter on expected downbeat data from the United States this week.
US manufacturing, labor and household spending data this week is expected to show more weakness in the U.S. economy despite the Fed's chairman announcements last week that will not let the economy to fall back into recession.
The dollar index, which tracks the dollar movements against a basket of major currencies, advanced to 82.89 compared with the day's opening at 82.74 after US personal spending inclined to 0.4% in July from 0.0%.
With regard to the dollar-yen pair, it declined on the daily basis breaching support at 84.78 which took the pair to a low of 84.54. Despite the pledged Japanese 920 billion yen stimulus by the BoJ, there is no confidence that such measure would be able to weaken the currency that climbed to 15-year high against the dollar this month.
So far, the pair is trading at 84.68 after recording a high of 85.90, while support is seen at 84.30 while resistance is at 85.35.
Concerning the euro-dollar pair, it slipped to a low of 1.2684 but it found support that lift it up to 1.2705 where it is currently trading. Today, economic confidence increased in August to 101.8 from 101.1 but could not lift the euro higher. Later in the week important fundamentals from the euro area are due, including rate decision, growth and inflation data.
The euro-dollar pair so far has touched a high of 1.2766, while for the rest of the day the pair is expected to move between support and resistance at 1.2685 and 1.2770 respectively.
Turning to the sterling-dollar pair, it is showing slight decline on the daily charts as it fell from a high of 1.5575 after hitting strong resistance at that level. The British Chamber of Commerce raised forecasts for the UK economy for the current and next year which helped the pound to pair some of its losses.
The royal pair is currently trading at 1.5515 after touching a low of 1.5507, whereas it is expected to move between support at 1.5440 and resistance at 1.5555 for the rest of the day.
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