The developments in Libya dominated financial markets amid the lack of economic news from Europe and the United States, where a report earlier suggested that Libyan leader Muammar Gaddafi might be preparing to leave Libya, which led oil prices to decline from the highest level since September 2008, as oil prices rose to $107 a barrel earlier today.
Nevertheless, pessimism dominated investors once again after U.S. officials signaled that it was unlikely that Gaddafi will leave Libya, and accordingly, oil prices rose back, which forced investors back into safety measures including the U.S. dollar, while investors shunned risky assets including the Euro, the Pound, and the stocks.
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, was unchanged on daily basis to trade at 76.42, compared with the opening level at 76.43, while recording a high of 76.50 and a low of 76.12.
Gold prices eased slightly to trade at $1433.80 an ounce, compared with the opening level at $1435.09, while oil prices rose back to trade at $105.34, compared with the opening level at $105.15 a barrel.
The Euro declined slightly against the Dollar, where the EUR-USD pair is trading at $1.3967, compared with the opening level at $1.3990, while recording a high of $1.4036 and a low of $1.3955. The pair is now trading above the $1.3925 support level, and so long it remains above this level, we should expect more upside movement and the target then will be the $1.4085 resistance level, however, if the pair drops below $1.3925, the next target will be the $1.3860 support level.
The British Pound declined today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6193, compared with the opening level at $1.6265, while the pair recorded a high of $1.6341 and a low of $1.6185. The pair is now trading above the support level at $1.6180 and so long it continues to trade above this level, the next target is set at $1.6415, however breaching the $1.6180 level to the downside would send the pair to the $1.6090 support level.
The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.14, compared with the opening level at ¥82.35, while recording a high of ¥82.39 and a low of ¥81.95. The pair is now trading above the ¥81.60 support level, which suggests that the way is open to reach the resistance at ¥83.10, but the pair must remain above ¥81.60 in order for this bullish scenario to continue, however, breaching the ¥81.60 to the downside would activate the bearish scenario and send the pair to the support level at ¥79.60.