Dollar gain after Ireland credit downgrade

By @ibtimes on

Moody's Investors Services downgraded today Ireland's credit rating by five levels, spurring demand for low yielding assets. Moody's also stated that it has placed Greece's credit rating under review for possible downgrade.

The Euro and the pound gained earlier today against the dollar, but with German business confidence rising to a record, the Euro and the cable reversed the rise and dropped by the start of the US session.

Lack of fundamentals from the US ahead of the weekend spurred demand for lower yielding assets and causing commodities to trim some of the gains it acquired earlier today.

The US dollar index, which tracks the performance of the dollar against six-major currencies, rose on the daily scale to a high of 80.18 which is the current trading levels, while setting a low of 79.55.

The Euro fell below the opening levels of 1.3358 as it's currently trading against the dollar at 1.3225. the pair rebounded from the resistance at 1.3356 that bounds trading along with the support levels at 1.3120.

As long as the pair remains above 1.3175, expectations refer to a bullish trend targeting 1.3365; conversely, if the pair breaches the mentioned support, it will pave the path for the pair for further bearishness to 1.3120.

The pound opened trading at 1.5630, while setting a high of 1.5645 and a low of 1.5508 before settling near 1.5520 levels.

The pair managed to maintain a four-hour closing below 1.5553, accordingly paving the path to bearish further and target 1.5485 then 1.5425.

As for the Yen, the pair traded higher at 84.01 while setting a high of 84.08 and a low of 83.67, compared with the opening levels of 83.89.

Today's trading range is bounded by the support at 84.90 and the resistance at 84.40.

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