The currencies market in today’s Asian session has witnessed a slight decline in euro and the royal pound amid an absence of fundamentals. The euro dollar pair fell slightly recording a low of 1.4763 and a high of 1.4793, trading around 1.4780. The pair rallied yesterday from the 1.4720 levels to the 1.4815 levels where it found a strong resistance to start falling back to the 1.4780 levels. The German Zew survey will be released today that may affect the pair’s trades.

As for the pound dollar pair, it declined slightly recording a low of 1.5761 and a high of 1.5821, having the royal currency trading around 1.5737. The pair declined for the third consecutive day. The British CPI is on queue today that tends to affect the pair on release. However, the daily stochastic oscillator is supporting the downside.

One the other hand, the dollar gained against the Japanese yen; recording a high of 90.15 and a low of 89.63. The pair is having a resistance at 90.25 along with a support at 89.65.
Yet, the U.S. dollar is expected to strengthen against the euro and commodity-backed currencies by less than previously estimated over the next three months.

The greenback, which has dropped against all 16 of its most-active counterparts this year, will rise to $1.40 against the euro in three months from $1.4790. The Australian dollar will trade at 80 U.S. cents, Canada’s loonie at C$1.12 and the Swiss franc will fetch 1.09 per dollar as we head into year end.

The Canadian currency climbed to its highest since September 2008 yesterday and bought C$1.0318. Australia’s currency rose to 90.84 U.S. cents, after touching the strongest in 14 months and New Zealand’s dollar gained to 73.82 cents.

The commodity backed currencies of Australia, New Zealand and Canada, along with the Brazilian real, South African rand and Norwegian krone, have been the biggest gainers against the greenback this year as traders bet on assets that would benefit from a global recovery.

Finally, Prices of commodities have climbed 16 percent this year, as investors sought hedges against inflation during concerns about a widening U.S. budget deficit and record- low interest rates.