The U.S. Dollar rose against major currencies on Monday, where investors were relieved after U.S. policymakers agreed a $38 billion spending cuts plan late on Friday before the midnight deadline and avoiding a government shutdown, meanwhile, investors also headed for low yielding assets including the Dollar and the Yen after an earthquake hit Japan and resulted in a 1-meter tsunami wave.
Investors were a little bit cautious on Monday amid the lack of economic fundamentals from the United States, while the strength of the U.S. dollar pressured commodity prices to drop from record highs, where gold set a new all-time record high today, and oil rose above $113 a barrel for the first time since September 2008.
The U.S. Dollar index, which tracks the dollar's performance against a basket of six major currencies including the Euro, the British Pound, and the Japanese Yen, rose slightly on daily basis to trade at 74.98, compared with the opening level at 74.89, while recording a high of 75.09 and a low of 74.88.
Gold prices dropped after setting a new record high at $1476.22 to trade at $1466.23 an ounce, compared with the opening level at $1475.71, while also recording a low of $1464.28. Crude oil prices also dropped from a record high not seen since September 2008 at $113.43 to trade at $112.05 a barrel, compared with the opening level at $112.74 a barrel, while recording a low of $111.52 a barrel.
The Euro retreated today against the U.S. dollar, where investors are still worried over the looming debt crisis in the Europe, where the EUR-USD pair dropped to trade at $1.4445, compared with the opening level at $1.4480, while recording a high of $1.4482 and a low of $1.4421. The pair is trading above the critical support level at $1.4440 and so long the pair remains above this level, the target is set at the $1.4625 resistance level, but breaching the support at $1.4440 would send the pair to the support at $1.4350.
The Pound also declined against the U.S. dollar, where the GBP-USD pair traded at $1.6368, compared with the opening level at $1.6392, while recording a high of $1.6426 and a low of $1.6313. The pair is trading above the support level at $1.6340 and so long the pair remains above this level, the target is set at the $1.6585 resistance level, but breaching the support at $1.6340 would send the pair to the support at $1.6240.
The U.S. dollar dropped today against the Japanese Yen, where the USD-JPY pair traded at ¥84.63, compared with the opening level at ¥85.13, which was the highest level for today, and the lowest level reached today was ¥84.54. The pair is still trading below the resistance level at ¥85.65, and accordingly, we should expect it to drop to the support level at ¥84.50, but breaching the ¥85.65 to the upside, would send the pair to the resistance at ¥87.35.