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Currencies Update: Dollar Falls to 5-Month Low Vs Euro
Written by article default Tuesday, 28 September 2010 13:31
The U.S. dollar extended its drop against major currencies as fears continued to mount among investors over the outlook for the U.S. economy, where data from the housing market and consumer confidence failed to meet estimates, while investors continue to speculate that the Fed will undertake further quantitative easing.The Euro surged against the Dollar to a 5-month high after a senior official said that ECB might withdraw some of its emergency programs, which ignited hope among investors, especially as investors are still worried over the European debt problem and its consequences on the Euro.
The U.S. dollar index, which measures the dollar’s performance against a basket of currencies including the Euro, the Pound, and the Yen, declined on daily basis to trade at 78.92, compared with the opening level at 79.44, while recording a high of 79.82 and a low of 78.87. Meanwhile, gold prices rose to a record high at $1310.00 an ounce after opening at $1292.00, and oil prices rose to trade at $76.74 a barrel, compared with the opening level at $76.18 a barrel.
The Euro rose against the dollar to its highest level in five months, where the pair is now trading at $1.3580, compared with the opening levels at $1.3429, while the EUR-USD pair recorded its highest today at $1.3595 and its lowest at $1.3381. The pair managed to breach the $1.3500 level which represents a decent support now for the pair, while the target is now set at $1.3660 so long as the pair remains above $1.3500.
The British Pound was little changed against the U.S. dollar today, where the pair is now trading at $1.5804, compared with the opening level at $1.5809, while the GBP-USD pair recorded its highest today at $1.5895 and its lowest at $1.5718. Technical analysis suggests that the pair is facing a strong support at $1.5800 and so long as the pair remains above this level, the target is set at $1.5935.
Finally, the U.S. dollar fell against the Japanese Yen, where the USD-JPY pair is now trading at 83.74, compared with the opening levels at 84.26, while the pair recorded its highest today at 84.34 and its lowest at 83.68. The pair is facing a strong resistance at 84.00 and so long trading remains below this level, we should expect the pair to drop to 83.55, while settling above the 84.00 level would open the way for the pair to rise towards the 85.20 level.