The U.S. dollar rose against majors slightly on Tuesday, where worse than expected data from the U.S. housing and industrial sectors spread pessimism across global financial markets, while the uncertainty over the European debt crisis boosted refugee for low yielding investments including the U.S. dollar.
Commodities dropped as fears over the recovery in the United States were boosted by worse than expected housing starts and building permits in April, in addition to the industrial production index, which was flat in April.
Investors meanwhile are still concerned with the European debt crisis, since the situation remains unclear with suggestions from the chairman of the euro zone finance minister, Jean-Claude Junker that Greece could go into what he called a soft restructuring.
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 75.73, compared with the opening level at 75.61, while recording a high of 75.83 and a low of 75.43. Gold prices extended their drop due to the strength of the dollar, to trade at $1473.17, compared with the opening level at $1489.17 an ounce, while crude oil prices declined to trade at $95.20, compared with the opening level at $96.99 a barrel.
The Euro was little changed against the Dollar, where the EUR-USD pair is trading at $1.4140, compared with the opening level at $1.4145, while recording a high of $1.4224 and a low of $1.4121. The pair is now trading below the $1.4150 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.4050 support level, however, if the pair rise above $1.4150, the next target will be the $1.4250 resistance level.
The British Pound was little changed as well today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6199, compared with the opening level at $1.6197, while the pair recorded a high of $1.6303 and a low of $1.6174. The pair is now trading below the important level at $1.6255 and so long it continues to trade below this level, the next target is set at $1.6110, however breaching the $1.6255 level to the upside would send the pair to the $1.6300 resistance level.
The U.S. Dollar rose against the Japanese Yen, where the USD-JPY pair is now trading at ¥81.37, compared with the opening level at ¥80.86, while recording a high of ¥81.77 and a low of ¥80.83. The pair is now trading below the ¥81.75 resistance level, where it touched this level earlier today and rebounded to the downside, and only breaching this resistance would activate the next target at ¥83.50, but so long trading remains below this level, the next support is located at ¥80.60.