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Currencies Update: Dollar rises, halts three day decline
Written by article default Friday, 05 November 2010 09:55
The dollar stopped a three day decline on Friday and ascended following the release of US jobs report that showed 150 thousand job gained in the month of October, compared with the prior job loss of 40 thousand in September.The dollar declined earlier on reports from Euro Zone that showed an unexpected drop in retail sales but the jobs report came to restore investors’ confidence in low yielding assets, causing the dollar to rise.
The US dollar index, which tracks the performance of the dollar against six majors rose on the daily scale from the opening levels of 75.96 to trade at 76.36 where the index reached the highest at 76.63 and the lowest at 75.81.
The Euro-dollar pair depreciated on the daily scale from the opening levels of 1.4215 to trade at 1.4090.
The pair’s trading remains bearish throughout the day with targets at 1.4000. The pair reached the lowest today at 1.4030.
As for the pound, it fell against the dollar to trade at a low of 1.6164 compared with the opening levels of 1.6293 while currently the pair is trading at 1.6240.
The pair is targeting levels at 1.6200 but volatility will prevail throughout trading, accordingly, a four-hour closing below these levels would support a bearish trend to extend and target levels at 1.6030.
As for the Yen, it depreciated against the dollar in trading today, where the USDJPY pair rose to trade at 81.10, compared with the opening levels of 80.71, while setting a high of 81.47 and a low of 80.60.
Returning to trade above 80.80 caused a bullish intraday direction to be activated, with targets at 81.60.