FXstreet.com (Córdoba) - Greenback ended on Thursday near the lows of the year across the board, with the exception of the Yen. Stocks fell in Asia and in Europe but in Wall Street equities rose posting important gains. The surge in stocks weakened the Dollar that moved away from intra-day highs and ended near the lows of the year.
Corporate earnings and an increase in the Leading Indicators helped stocks surge during the American session weakening the Dollar. EUR/USD fell to 1.4945 during the Asian session but from there started to rise at a slow pace and erased previous losses. The pair finished a few pips below 14-month high at 1.5025.
The ecPulse.com analysis team affirms: The U.S stocks closed in a green zone due to strong optimism spread within the stock market as a result of cheerful and better-than forecasts earnings reported from huge and known U.S corporations such as Traveler's Cos. to Mc Donald's Corp, boosting hopes accordingly that the crisis is actually close to an end, whereas the DJIA managed to breach the 10,000 barrier to the upside.
GBP/USD managed to recover after falling to 1.6485 (intra-day low). The pair approached to the resistance zone at 1.6640. USD/CHF peaked at 1.0125 during the European session but failed to hold and regained the downside. The pair fell almost a hundred pips from the highs of the day finding support at 1.0040, a few pips above yesterday lows.
Similar situation applies to currencies tied to commodities. Dollar rose sharply the first half of the day but then failed to hold and pullback below the opening level. AUD/USD tested levels below 0.9200 but finished the day at 0.9270. NZD/USD fell momentarily below 0.7500 but then recovered rising to 0.7600.
For the first time of the week the Dollar did not fall to fresh low for the year across the board.
The Yen continued to lose ground across the board, falling to a one-month low against the Dollar and Cable and to a 2-month low to the Euro.