The dollar gained momentum against majors in today's trading session after investors sought safety investment where they focused on low-yielding assets and bonds, causing a rise in demand on various treasury bills in Spain, Greece and Ireland despite the continuous debt struggle in the European continent.
Today's report from U.K. regarding its debt witnessed a narrow deficit, yet it came lower than forecasts causing the pair to go to the downside.Also,the dollar bounced back and gained momentum despite the disappointing housing data that was presented from the U.S. economy, where the number of previously owned houses sales dropped beyond expectations, reaching -5.0 percent during the month of June, validating investors fear that the U.S. housing sector might witness a setback in conditions and cause a delay in economic recovery.
Meanwhile, the Yen sustained its rally against the dollar despite the news that emerged of BoJ willingness to intervene to depreciate the Yen against the dollar after rising for a seven-month high during last week's trading session. But the major impact that led investors to target low-yielding assets and safe investment were the results announced by major corporations in the U.S. where the biggest shock came from Goldman Sachs Group Inc as the bank's second quarter profits dropped by more than 80 percent during the three months ending June 31, missing analysts' projections. The bank stated that net income plunged to $613 million or $0.78 a share, compared with a year earlier net income of $3.44 billion or $4.93 a share.
Pessimism dominated markets, causing investors to dampen demand for risky investments and focus only on safe ones, accordingly, the dollar extended its gains on the U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, where the index rose to last trade at 82.93, from the opening levels of 82.48, the index reached the highest levels for today at 83.06 and the lowest at 82.17.
As for trading, the euro-dollar pair traded lower on the daily scale as the dollar managed to slash its earlier losses against the European common currency, to currently trade at $1.2849 compared with the opening levels of $1.2931, where it managed to reach the highest levels today at $1.3027 and the lowest at $1.2837. The pair isapproaching the a strong support levels 1.2825, in attempt to test these levels where a breach of those levels will cause further depreciation for the pair to target levels at $1.2760 - $1.2750.
Moving to the Royal currency, the pair extended its drop for the third consecutive trading session where the pair is currently trading at $1.5168, compared with the opening levels of $1.5224, where it managed to reach the highest levels today at $1.5308 and the lowest at $1.5151.A breach of 1.5155 and consolidating below it will ensure the bearish reversal over intraday basis.
Finally, talking about the dollar's performance against the Yen, the USDJPY pair traded above its opening levels of 86.66, where it's currently trading at 86.99, the pair managed to reach the highest levels today at 87.18 and the lowest at 86.62. a bearish intraday trendis projected with targets at 85.95, keeping in mind that a breach of 87.20 would cause the pair to appreciate further to target 88.00 levels.