The U.S. dollar rose against major currencies today, where data from the U.S. labor market continued to signal improvement, while concerns that central banks around the world will start to raise interest rates amid rising inflationary threats in emerging economies boosted the dollar.
Jobless claims dropped below estimates according to a report released today by the U.S. Labor Department, while stock markets were fluctuating or even dropping today all around the globe, as concerns mounted other central banks will follow the lead of the People's Bank of China in raising interest rate.
The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose on daily basis to trade at 78.11, compared with the opening level at 77.74, while recording a high of 78.34 and a low of 77.74. Gold prices slightly declined to trade at $1361.51, compared with the opening level at $1363.78 an ounce, while oil prices slightly rose to trade at $87.01, compared with the opening level at $86.80 a barrel.
The Euro declined against the Dollar, where the EUR-USD pair is trading at $1.3628, compared with the opening level at $1.3718, while recording a high of $1.3728 and a low of $1.3577. The pair is now trading below the $1.3670 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.3575 support level, however, if the pair rise above $1.3670, the next target will be the $1.3745 resistance level.
The British Pound rose today against the U.S. Dollar after the BOE decided to keep interest rates unchanged, while also confirming the bond purchases will remain unchanged as well, where the GBP-USD pair is now trading at $1.6122, compared with the opening level at $1.6098, while the pair recorded a high of $1.6137 and a low of $1.6009. The pair is now trading above the important level at $1.6040 and so long it continues to trade above this level, the next target is set at $1.6150, however breaching the $1.6040 level to the downside would send the pair to the $1.5965 support level.
The U.S. Dollar rose strongly against the Japanese Yen, as Japan's credit rating is under review, where the USD-JPY pair is now trading at ¥83.18, compared with the opening level at ¥82.39, while recording a high of ¥83.28 and a low of ¥82.38. The pair is now trading above the ¥82.75 level, which suggests that the way is open to reach the ¥83.70, but the pair must remain above ¥82.75 in order for this upsdie scenario to continue, however, breaching the ¥82.75 to the downside would send the pair to the support level at ¥82.20.