The U.S dollar rebounded to the upside today, recovering some of the losses incurred yesterday, affected by the rising demand for safe havens, as we can see investors are trading currencies with caution after the optimism seen in the past session, which led the U.S. dollar to close in New York below 77.00.
Europe remains the main focus in the market, as we can see European leaders are closely watched, awaiting any move or step to be taken to quell jitters and debt woes, with all of the attention is concentrated on the leaders' summit on October 23.
Due to the high level of uncertainty, we can see currencies are volatile, awaiting the Slovak parliament to approve the expanded powers of the European rescue fund, especially after the leader of the leftist opposition Smer party, Robert Fico, had reached an agreement with three parties in the coalition to approve the expansion plan by Friday.
The euro lost strength against the greenback after opening the session at 1.3790, where the EUR/USD pair after reaching a high of 1.3826 in the Asian session, reversed to the downside during the European session to reach the lowest at 1.3708, and traded moments ago around 1.3773.
The U.S. dollar index (USDIX) advanced after starting the session at 77.00, to currently trade around 77.20 after reaching the highest at 77.32 and the lowest at 76.83.
Moreover, the sterling pound slumped today despite the upbeat trade balance figures, where the total trade deficit narrowed beyond expectations to 1.877 billion pounds from 4.651 billion.
Concerning the GBP/USD, the pair advanced during the Asian session, yet reversed in the European session, where after hitting the highest at 1.5761, the pair reversed to a low of 1.5673. The pair opened the session at 1.5750 and is trading now around 1.5700.
Furthermore, the Japanese yen is trading within wider range today, especially after the huge losses seen in the past session against the U.S. dollar, where after closing New York session yesterday at 77.24, the USD/JPY pair opened today at 77.23, and recorded a high of 77.29 and a low of 76.66, and is trading now around 76.82.