Dollar Declines as ISM Manufacturing Expands above Expectations

By @ibtimes on

The U.S. dollar declined against major currencies after the ISM manufacturing expanded at the fastest pace since 2004, where optimism spread among investors as they invested in higher yielding assets. Stock markets rose strongly, where the Dow Jones traded above 12000 and the S&P 500 index traded above 1300.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, declined on daily basis to trade at 77.07, compared with the opening level at 77.56, while recording a high of 77.65 and a low of 77.03. Gold prices rose amid the dollar's weakness to reach $1343.04, compared with the opening level at $1332.56 an ounce, and oil prices declined to trade at $91.82, compared with the opening level at $92.09.

The Euro inclined against the Dollar today to the highest since November, where the EUR-USD pair is trading at $1.3824, compared with the opening level at $1.3713, while recording a high of $1.3835 and a low of $1.3701. The pair is now trading near the target at $1.3835 and if the pair manages to break this level, the next target will be the resistance at $1.3890.

The British Pound rose for a second day against the U.S. Dollar to the highest level since November, where the GBP-USD pair is now trading at $1.6139, compared with the opening level at $1.6026, while the pair recorded a high of $1.6156 and a low of $1.6024. The pair is now targeting the resistance at $1.6185 and then the $1.6250 resistance, while support can be seen at $1.6060.

The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥81.37, compared with the opening level at ¥82.10, while recording a high of ¥82.15 and a low of ¥81.31. The pair is now trading below the ¥81.85 resistance level, which suggests that the way is open to reach the ¥80.35, but the pair must remain below ¥81.85 in order for this bearish scenario to continue.

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