The U.S. dollar fell overall against major currencies, where confidence among investors rocketed amid optimism over the outlook for the U.S. economy in the first trading day of 2011, while data from the manufacturing sector in the United States also supported confidence, after showing manufacturing activities continued to expand in December.

The ISM manufacturing index was released today to show that manufacturing activities inclined in December and in line with expectations, while construction spending rose in November above forecasts, moreover, stock markets in the United States reported strong gains, with the Dow Jones and the S&P 500 both rising more than 1 percent by midday.

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, declined on daily basis to trade at 79.05, compared with the opening level at 79.31, while recording its highest today at 78.53 and its lowest at 78.99. Gold prices rose slightly to trade at $1420.75 an ounce, compared with the opening level at $1416.70 an ounce, while oil prices also rose to trade at $92.07 a barrel, compared with the opening level at $91.29.

The Euro-Dollar pair rose slightly in today's session, where the pair opened trading at $1.3356 while recording a high of $1.3395 and a low of $1.3250, where the pair is now trading at $1.3380. the pair managed to continue trading above the important level at $1.3240 and accordingly, the pair headed to the upside with targets at $1.3500 on intraday basis, however, we should note that breaching the $1.3240 to the downside would send the pair back to the $1.3120 level.

The British Pound declined against the U.S. dollar today, where the GBP-USD pair opened today's session at $1.5571 and dropped to trade now at $1.5495, where the pair recorded its highest today at $1.5575 and its lowest at $1.5433. The pair is still moving within a neutral zone, where further confirmation is needed, as the pair is facing strong support at $1.5480 and falling below this level would send the pair down to the $1.5265 support level, while the resistance at $1.5565 is keeping the pair from rising further, although breaching this resistance would send the pair to the $1.5710 level.

Finally, the U.S. dollar rose against the Japanese Yen today, where the USD-JPY pair opened trading at ¥81.13 which was the lowest level today and recorded its highest at ¥81.73, where the pair is now trading at ¥81.55. Technical analysis is suggesting a downside trend for the pair, given that the pair doesn't breach the ¥82.30 resistance level, where the pair is expected to drop back to ¥80.35, however breaching the resistance at ¥82.30 would send the pair to the ¥83.15 level.