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Currencies Update: Dollar extends the rise against majors
Written by article default Tuesday, 28 September 2010 13:30
The world reserve currency managed to outperform major currencies after dropping earlier throughout the Asian Session. The dollar extended its gains against majors as indicated on the US dollar index, a gauge of the dollar’s performance against six currencies, where the index opened today’s trading at 79.43 to record a high of 79.81 before retreating to trade at 79.49.The euro depreciated earlier on sovereign debt concerns, supported by investors’ speculation that Moody’s Financial Services might actually downgrade Spain’s Credit Rating by two notches.
The Euro traded at a low of 1.3379 before appreciating to a high of 1.3494 while settling it’s trading near 1.3476 levels.
A bullish trend is highly predicted, targeting 1.3660 that requires a breach of 1.3500. A breach of 1.3420 and stability below these levels would weaken the chances for the upside movement.
With regards to the royal currency, the pound-dollar pair extended its rise for the fifth consecutive trading session, nearing a pivot resistance level at 1.5865. The pair is currently trading at 1.5855, reaching a high of 1.5894 and a low of 1.5778.
UK’s GDP Final estimate for the second quarter of this year came consistent with expectations at 1.2 percent on the quarterly basis and 1.7 percent on the yearly basis.
A bullish intraday direction is still at play, with targets at 1.5800, but a retesting for 1.5725 is highly anticipated before the pair extends its rise. If the pair managed to breach 1.5800 it would pave the path for the pair to target 1.5945.
The Japanese Yen gave up its gains acquired yesterday and depreciated in Tuesday’s trading session, reaching 84.13, compared with the opening levels of 84.28.
Conversely, technical analysis suggest that the drop is merely a correctional move, where the pair is projected to rise further targeting 84.75, but requiring stability in trading above 84.00 – 83.85.
The Swiss Franc rose against the Euro in today’s trading, after the Consumption gauge climbed higher than expected, providing the Franc with enough momentum to rise against the common European currency.
Nevertheless, the Franc’s performance against the dollar was weak, where the USDCHF pair traded unchanged at 0.9852, setting a low of 1.9810 and a high of 0.9862.