The Greenback rebounded against its peers following a series of economic events that kicked off demand from high-yielding assets on Wednesday, first, the Central Bank of England decided to keep the benchmark interest tares intact at 1.00 percent, followed by the European Central offer of a record three-month loans worth 489 billion euros which was met with incredibly large demand at an auction today, followed by the U.S housing data that outpaced economists' average estimates for November.
Together, these economic fundamentals were seen as a boost for the world's top reserve currency, especially since the euro lost its appeal while fears reignited after European lenders sought more funds than forecasted at the auction today, indicating the impact of the debt crisis is way too harsh on the EU banking sector as lenders are actually out of liquidity, however, the ECB will activate the loans tomorrow, so the effect will be eventually shaped before the weekend.
Meanwhile, the dollar index, which measures the performance of the U.S dollar against six of its peers including the Euro, the Pound and the Japanese Yen, picked up slightly from today's opening level of 79.68 and recorded the highest level at 79.95 and lowest level at 79.84 to currently trade around 79.92 levels.
Gold steadied below the opening level of $1613.83 to currently trade at $1612.98 an ounce. Dollar gains were offset after the EIA report signaled that crude oil inventories dropped nearly 10.6 million barrels in the past week, so crude oil prices jumped following signs of increased demand to currently trade around $98.70 a barrel after opening at $97.54 levels.
The Euro erased earlier gains against the US dollar today, where the EUR/USD pair dropped nearly 0.17 percent to currently trade around $1.3067, while recording its highest level at $1.3197 and lowest at $1.3024 from the opening level of $1.3086, eventually, the pair is expected to trade within a support level of $1.2955 and a resistance level of $1.3270.
on the other hand, the British pound rose against the US dollar today, sending the GBP/USD pair to trade around $1.5674 after opening at $1.5669 levels, while recording a high at $1.5774 levels and lowest at $1.5648 levels. Meanwhile, the pair is expected to trade between a support level of $1.5420 and resistance level of $1.5880.
Last but not least, the Dollar rose against the Japanese Yen on Wednesday, after the USD/JPY pair started trading at ¥77.85 and recorded its highest at ¥78.08 and lowest at ¥77.69 to currently trade around ¥78.06, thus, we suggest the pair will continue to trade within a ¥76.10 support level and ¥79.55 resistance level.