European sovereign suppressed global markets severely, where the Euro and risky assets such as equities and commodities, lost their appeal over the past few days, but the announcement of nearly $1.0 Trillion rescue package for Europe's nation that carry a heavy burden of debt managed to restore investors' confidence, but to target risky investments along with low yielding assets as Carry Trade techniques continue to dominate the markets.
The Euro rebounded from a 14 month low against the dollar earlier today, but overall, the dollar managed to reverse its drop and advance against most of its counterparts by the opening of U.S. trading session. Moreover, indices around the globe managed to soar higher in trading due to the rescue package that was introduced by E.U. and the IMF to help Europe's nations with their debt obligations.
FTSE 100 Index closed 5.16% higher, while the CAC 40 index gained nearly 10.0 percent by closing, in addition the DAX index added 5.30% to Fridays closing levels. So far, indices in the U.S. managed to gain nearly 4.0 percent in trading, after slumping the past week on Greece's debt problems that spread pessimism among investors.
The U.S. dollar index, rose on the daily scale where it's trading at 84.05, compared with the opening levels of 83.55, where it managed to reach the highest today at 84.19 while the lowest at 82.90. The inverse-relationship between the greenback and commodities forced gold to decline to trade at $1201.30 an ounce, compared with the opening levels of $1204.95 an ounce, in addition, oil declined to trade at $75.99 a barrel, compared with the opening levels of $76.13 a barrel.
As for trading, the euro-dollar pair declined after gaining earlier in the Asian and European session, where it returned to the minor descending channel as the pair breached the support at $1.2800, where it's currently trading at $1.2778, compared with the opening levels of $1.2918, where the pair managed to set the highest today at $1.3093 and the lowest at $1.2761. Expectations show that the pair will descend further to target $1.2730, but these targets require $1.2870 levels to remain intact.
Moving to the Royal currency, the pair dropped in trading as it opened today's trading at $1.4880, where the pair set the highest levels for today at $1.5052 and the lowest at $1.4759 while currently trading at $1.4863. The pair is testing strong support levels at $1.4855 where a breach would pave the path for the pair to target 1.4825 and 1.4800, but in order to achieve those targets levels $1.4950 must remain intact.
Finally talking about the USDJPY pair, it extended Fridays advance as it breached the 23.6% Fibonacci levels at 92.43, the pair opened today's trading at 92.39 while it's currently trading at 93.17, while it managed to reach the highest today at 93.53 and the lowest at 91.65. The breach of 92.43 levels paved the path for further rise, but a clear breach of the upcoming resistance at 93.99 would be required in order for the pair to continue with its ascending trend and target levels at 94.78.