Traders rode the high seas of uncertainty on Wedensday, seeking for higher-yielding assets, where we saw dollar drop against its peers, following cheerful data from the U.S and central banks colaborated to provide additional liquidity for lenders in case Europe's debt crisis worsens.
Markets grew optimistic after Federal Reserve and five central banks lowered interest rates on dollar swaps and China slashed bank's reserve requirements, fueling hopes that central banks will provide more stability to the financial system and prevent the debt crisis from slamming global markets.
Accordingly, optimism was the main driver in trading on Wednesday, amid upbeat reports on employment, housing and manufacturing growth. Firstly, the ADP employment change showed today the U.S private employers added 260 thousand jobs in November, beating both the prior and forecasted estimates.
In addition, the Chicago-based ISM posted a better than forecasted manufacturing growth in November, with a reading at 62.6 from 58.5, while the National Association of Realtors posted a strong hike in sales of pending homes. Furthermore, the Canadian economy registered splendid growth at 3.5 percent in the third quarter.
Accordingly, the dollar index which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, fell from today's opening level of 79.00 to currently trade at 78.36 recording its highest level at 79.37 and its lowest at 77.92.Gold inclined to trade around $1749.04per ounce from the opening price of $1718.13. Oil gained as well to reach $100.95 after opening at $99.62 per barrel.
The Euro rose against the US dollar today after opening at $1.3323 as the EURO/USD currently trades around $1.3434, while recording a high of $1.3533 and a low of $1.3259.Should the pair breach the key resistance at $1.3415, then the pair will be targeting the next resistance level at $1.3490, but the support level remains at $1.3415 at the meantime.
The British Pound rose against the dollar today, where the pair is currently trading around $1.5701 after opening at $1.5596 levels, while recording a high of $1.5779 and a low of $1.5526.If the GBP/USD breaches the key resistance level at $1.5720, then the pair will be targeting the next resistance level at $1.5780, now the $1.5680 level remains as the support level.
Moreover, the Greenback fell before the Japanese Yen on Wednesday, after the USD/JPY pair started trading at ¥77.97, while recording the high of ¥78.16 and a low of ¥77.28 to currently trading at ¥77.48. accordingly, the pair will be trading between the resistance level at ¥77.30 and the support level at ¥77.30.