The greenback extends gains in the market as oil prices took a plunge since the expected storm Gustav weakened before approaching Louisiana. Commodities appeal was reduced since prices started slipping as investors once hedged against a weak dollar and inflation. Also of course since crude prices fell so much marking a four month low, is projected that it will recover growth in the U.S. since now prices have eased which means inflation should took a step back too, anther support to the boosting of the currency.
The euro lost more ground in the market as now the focus remains on the rising dollar and that the several rate cuts was enough for their economy to stimulate. The EU Zone is scheduled to release inflation data as it will show expectations that the PPI for the month of July had inclined to 1.2% from 0.9%. The EUR/USD is currently traded at 1.4523 while recording a high of 1.4597 and a low of 1.4520.
The pair is trying to gather enough support from the 1.4520 level before and if it does reverse to the upside resistance of 1.4595
The anticipations remain in the market that there is a future rate cut by the BoE so growth can recover in the UK, yet the scheduled meeting this Thursday is expected to show that the central bank left interest rates steady at 5%. The sterling continues its deterioration pressured by the weak economy. The GBP/USD is currently oversold in the markets as the ADX indicator is showing us strong momentum while the pair tries to gather strength before rebounding from the support of 1.7845 to the resistance of 1.7980. The pair is currently traded at 1.7875 while recording a high of 1.7942 and a low of 1.7867 so far.
As the Asian stocks continue their fall, the yen continues to rise against the euro and pound as yet is weak against the strong USD. The USD/JPY is currently traded at 108.24 while recording a high of 108.53 and a low of 107.92 as we see a support at 108.20 and a resistance at 108.40.
The anticipations remain in the market that there is a future rate cut by the BoE so growth can recover in the UK, yet the scheduled meeting this Thursday is expected to show that the central bank left interest rates steady at 5%. The sterling continues its deterioration pressured by the weak economy. The GBP/USD is currently oversold in the markets as the ADX indicator is showing us strong momentum while the pair tries to gather strength before rebounding from the support of 1.7845 to the resistance of 1.7980. The pair is currently traded at 1.7875 while recording a high of 1.7942 and a low of 1.7867 so far.
As the Asian stocks continue their fall, the yen continues to rise against the euro and pound as yet is weak against the strong USD. The USD/JPY is currently traded at 108.24 while recording a high of 108.53 and a low of 107.92 as we see a support at 108.20 and a resistance at 108.40.
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