Optimism spread through financial markets ahead of a key confidence vote for Greek Prime Minister, George Papandreou by the parliament, where investors are hopeful the Greek PM will receive the needed vote of confidence to undertake harsh austerity measures in order to help Greece receive a second bailout by the EU and the IMF.
Moreover, better than expected existing home sales supported confidence further, as existing home sales fell in May by .8% to an annual rate of 4.81 million units, better than the expected drop of 5 percent.
The U.S. dollar index, which measures the performance of the USD against a basket of major currencies including the Euro, the Pound, and the Yen, fell on a daily basis to trade at 74.69, compared with the opening level at 74.92, while recording a high of 75.00 and a low of 74.65. Gold prices extended their rise to trade at $1546.62, compared with the opening level at $1539.10 an ounce, and crude oil prices rose slightly to trade at $94.21, compared with the opening level at $94.12 a barrel.
The Euro rose against the Dollar, where the EUR-USD pair is trading at $1.4402, compared with the opening level at $1.4362, while recording a high of $1.4404 and a low of $1.4305. The pair is now trading above the $1.4325 level, and so long it remains above this level, we should expect more upside movement and the target then will be the $1.4455 resistance level, however, if the pair drops below $1.4325, the next target will be the $1.4280 support level.
The British Pound was little changed against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6233, compared with the opening level at $1.6235, while the pair recorded a high of $1.6245 and a low of $1.6167. The pair is now trading above the important level at $1.6210 and so long it continues to trade above this level, the next target is set at $1.6320, however breaching the $1.6210 level to the downside would send the pair to the $1.6045 support level.
The U.S. Dollar was little changed against the Japanese Yen in thin trading, where the USD-JPY pair is now trading at ¥80.15, compared with the opening level at ¥80.19, while recording a high of ¥80.24 and a low of ¥80.05. The pair is now trading between the support at ¥79.65 and the resistance at ¥80.75, where breaching the support would send the pair to the downside and target ¥78.00, while breaching the resistance would activate the next target at ¥81.50.