After rising earlier today in the Asian session, the U.S. dollar retreated slightly against major currencies, where the weak dollar sentiment continued to dominate financial markets, despite that the announcement of the death of Osama bin Laden had boosted the U.S. dollar earlier today.
Major currencies rose back against the U.S. dollar, where investors continue to speculate that the loose monetary policy by the Federal Reserve Bank will weaken the U.S. dollar, especially as other central banks are starting to tighten their monetary policy on rising risks of inflation. Moreover, better than expected manufacturing figures from the Euro Zone and Germany provided the Euro with momentum to trim losses and rise against the U.S. dollar.
The U.S. dollar index, which measures the dollar's performance against a basket of currencies, declined on daily basis to trade at 72.98, compared with the opening level at 73.14, while recording a high of 73.26 and a low of 72.95. Gold prices were flat to trade at $1552.27, compared with the opening level at $1551.73 an ounce, and crude oil prices dropped to trade at $112.12, compared with the opening level at $113.40 a barrel.
The Euro rose back against the U.S. dollar to trade at $1.4837, compared with the opening level at $1.4815, while recording a high of $1.4863 and a low of $1.4762. The pair seems to be heading towards the resistance level located at $1.4880 so long as trading remains above $1.4715, as breaching the support at $1.4715, would send the pair to the next support at $1.4605.
The British Pound was little changed against the U.S. dollar, where the GBP-USD pair was trading at $1.6691, compared with the opening level at $1.6695, while recording a high of $1.6738 and a low of $1.6643. The pair is now trading above the support level at $1.6610 and so long it remains above this level, the target is set at $1.6850, nevertheless, breaching the $1.6610 would send the pair to the next support at $1.6525.
The U.S. dollar however strengthened against the Japanese Yen, where the USD/JPY pair traded at ¥81.43, compared with the opening level at ¥81.22, while recording a high of ¥81.69 and a low of ¥81.00. The pair is now targeting the ¥82.50 level, but in order for this scenario to remain valid, trading must continue above the support level at ¥80.80.