The euro seems to break its weekly high and approach the area of ​​1.24 which has become a strong resistance in recent days. The single currency demonstrated an interesting recovery on Thursday, after the German leader Angela Merkel supported the European Central Bank in their intention to start solving the issue of sovereign debt of countries with serious payment difficulties.After meeting the French leader Hollande, and the Greek Prime Minister Samaras, Merkel made some remarks concerning steps that Europe is going to take in order to cope with the economic challenges.
However, the major currency pairs do not leave narrow price ranges. The euro and the pound sterling as well as the Swiss franc move in very sharp bands without getting investors’ confidence in those currencies. Nor is favored the dollar, although the retail sales data and inflation account for a new, though warm, recovery of the U.S. economy.
The Dow Jones index futures demonstrated an uptrend which may extend to the rest of the day.
Returning to the leading currencies, the Australian dollar lost its dominant uptrend in the last hours after the Reserve Bank of Australia was set to perform another cut in interest rates in the near future. The Aussie benefited from interest rates that are well above those offered by major central banks, and also by the high level of trade between Australia and China. However, the slowdown of the Asian giant for the past two months has a great impact on the Australian economy which anyway has a very still solid core.
The Canadian dollar remains very strong, now below 0.99, favored by the stability of oil prices. Presently there is no threat for short term uptrend. Meanwhile, the yen is away from highs in recent weeks, and after the break of a trend line in the medium term, it accelerates downward direction (upward in the figures), seeking the 80.10 area with strong resistance.

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