The U.S. Dollar rose against major currencies after strong data from the labor market and the housing sector spread optimism among investors over the outlook for the economy, although U.S. stock markets declined amid mixed earnings from a number of U.S. companies.
The U.S. Labor Department announced today that the number of people applying for first time jobless claims declined below expectations, while the existing home sales rose well above median estimates, where this provided the U.S. Dollar with strong momentum to rise.
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 78.90, compared with the opening level at 78.68, while recording a high of 79.17 and a low of 78.44. Gold prices declined amid the dollar's strength to reach $1351.06, compared with the opening level at $1369.18 an ounce, and oil prices declined to trade at $89.74, compared with the opening level at $91.57.
The Euro halted its gains against the Dollar, where the EUR-USD pair is trading at $1.3458, compared with the opening level at $1.3452, while recording a high of $1.3523 and a low of $1.3396. The pair is now trading above the $1.3425 level, and so long it remains above this level, we should expect more upside movement and the target then will be the $1.3625 resistance level, however, if the pair drops below $1.3425, the next target will be the $1.3310 support level.
The British Pound declined today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5886, compared with the opening level at $1.5972, while the pair recorded a high of $1.6010 and a low of $1.5837. The pair is now trading below the important level at $1.5910 and so long it continues to trade below this level, the next target is set at $1.5810, however breaching the $1.5910 level to the upside would send the pair to the $1.6185 resistance level.
The U.S. Dollar rose against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.96, compared with the opening level at ¥82.15, while recording a high of ¥83.07 and a low of ¥82.04. The pair is now trading above the ¥82.55 support level, which suggests that the way is open to reach the ¥83.10, but the pair must remain above ¥82.55 in order for this bullish scenario to continue, however, breaching the ¥82.55 to the downside would send the pair to the support level at ¥81.05.