Another day of pessimism dominate markets, where investors' concerns regarding the continuous struggle of European nations with their debt problems continued to suppress the 16-nation currency, which sent the Euro to trade near its 2001 levels against the Yen, while the dollar dominated trading along with gold as both were considered the safest investment amid the current economic conjuncture.
Better than expected rise in consumer confidence in the U.S. failed to support equity markets, where the U.S. stock markets followed their peers around the globe and dropped severely, affected by investors' woes of Spain's banking sector and the rising tension between South Korea and its neighbor North Korea, accordingly, investors sought low yielding assets which provided the dollar with enough momentum to rise on the daily scale against most of its counterparts, as indicated on the U.S. dollar index where it's currently trading at 86.95, compared with the opening levels of 86.78, where it managed to reach the highest levels at 87.45 and the lowest levels at 86.45 so far.
As for trading, the euro-dollar pair extended yesterday's drop to trade at $1.2270, compared with the opening levels for today that were set at $1.2370, while it managed to reach the highest levels today at $1.2371 and the lowest at $1.2175. Expectations show that the pair will descend further to target levels at $1.2140, but trading must remain below $1.2295 for these expectations to prevail.
Moving to the Royal currency, the GBP/USD pair descended to trade at $1.4341, compared with the opening levels of $1.4421, where it managed to reach the highest levels today at $1.4422 and the lowest at $1.4256, meanwhile, Expectations show that the pair will descend further on intraday basis if it manages to breach the support at $1.4340 where it will pave the path for the pair to descend and target levels at $1.4230, but for these expectations to prevail, the pair must ensure a four-hour closing below the previously mentioned support levels, along with preserving its trading below $1.4422 levels.
Finally talking about the dollar's performance against the Yen, the USD/JPY pair declined in today's trading where the pair opened its trading at 90.26 while it managed to reach the highest levels today at 90.30 and the lowest at 89.24, meanwhile; the pair is trading at 89.82. negative signs from the momentum indicator show that the pair will suffer volatility in trading near the 90.00 levels and it might attempt to breach those levels before descending further to target the 89.00 levels, which requires a daily closing below the 91.10 level.