The U.S released its pending home sales for the month of May coming in at -4.7% worse than both the expected reading of -3.0% and the prior reading of 6.3%. While the wholesale inventories came in at 0.8% slightly better than the expected 0.7% but still lower than the previous 1.3%. Still the release of this news hardly moved the markets as Mr. Ben Bernanke spoke today saying he may extend direct loans to Wall Street this year in order to help the financial markets crisis, boosted the greenback in the market.
The single currency deteriorated in the market as Bernanke's comments gave support to the dollar while taking the attention away from the euro. The EU Zone today lacked fundamental as the rise of the dollar, was the reason behind the slip of the euro. The EUR/USD is trading around the support of 1.5677 at 1.5673. The pair recorded a high of 1.5738 and a low of 1.5659.
The pound still remains weak on the back of the gaining greenback as the UK economy is also fundamental free. The rate decision this Thursday will help the sterling take a trend as the expectations show that the BoE will keep rates steady at 5% in fear of high inflation and sluggish growth. The GBP/USD is currently trading at 1.9704 while recording a high of 1.9795 and a low of 1.9690.
Currently in the market we see carry trades where investors buy high yielding currencies and sell low yielding currencies in which we call carry trades. The yen a victim to carry trades is currently seen losing ground in the market as the USD/JPY is currently trading between the support of 106.25 and the resistance of 107.45 at 107.30 while recording a high of 107.42 and a low of 106.24.
The single currency deteriorated in the market as Bernanke's comments gave support to the dollar while taking the attention away from the euro. The EU Zone today lacked fundamental as the rise of the dollar, was the reason behind the slip of the euro. The EUR/USD is trading around the support of 1.5677 at 1.5673. The pair recorded a high of 1.5738 and a low of 1.5659.
The pound still remains weak on the back of the gaining greenback as the UK economy is also fundamental free. The rate decision this Thursday will help the sterling take a trend as the expectations show that the BoE will keep rates steady at 5% in fear of high inflation and sluggish growth. The GBP/USD is currently trading at 1.9704 while recording a high of 1.9795 and a low of 1.9690.
Currently in the market we see carry trades where investors buy high yielding currencies and sell low yielding currencies in which we call carry trades. The yen a victim to carry trades is currently seen losing ground in the market as the USD/JPY is currently trading between the support of 106.25 and the resistance of 107.45 at 107.30 while recording a high of 107.42 and a low of 106.24.