Global markets are witnessing a huge wave of uncertainty in light of the conflicting reports that France and Germany reached an plan to expand the European Financial Stability Facility, which spurred mixed sentiments among the financial markets, especially after Moody's Investors Service downgraded Spain's credit rating by two notches and asssigned a negative outlook over the economy.
Meanwhile, financial markets are awaiting the EU Leaders to meet next Sunday, while French President Nicolas Sarkozy affirmed yesterday he is willing to visit Germany before the most-awaited meeting in order to keep an eye on the latest developments regarding the region's debt crisis.
The Dollar index which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, consolidated from today's opening level of 76.88 to currently trade at 76.86 recording its highest level at 76.97 and its lowest at 76.57.
Gold prices dropped to reach $1644.41 since the opening level of $1656.49. Oil steadied as well to reach $88.58 after opening at $88.20 per barrel.
The Euro rose against the US dollar today, as the EURO/USD rose to $1.3774 since the opening level of $1.3732, while recording a high of $1.3869 and a low of $ 1.3725. Accordingly, the pair will be targeting the next resistance point at $1.3840, while the support level remains at $1.3780.
The British Pound rose against the dollar as well, where the pair is now trading at $1.5792 after opening at $1.5701 levels, while recording a high of $1.5847 and a low of $1.5700. The pair is trying to breach the resistance levels of $1.5820, and if the pair managed to breach this level, the pair will be targeting the next resistance level at $1.5820 and then the next support level will be at $1.5820, however, the $1.5720 will be the support level for the time being.
On the other hand, the Japanese Yen inclined against the US dollar throughout the session, as the JPY/USD pair started trading at ¥76.77 this morning, while recording the high of ¥76.86 and a low of ¥76.65, but now the pair is trading around ¥76.82, and thus the pair will be trading within a resistance level of ¥76.95 and a support level of ¥76.60.