The dollar gained momentum in trading Thursday against the Euro, trading at a week high on signs of improvement witnessed in the world's leading economy, spurring speculations that the economy is gathering momentum and recovery is building.
The U.S. dollar index, which tracks the performance of the dollar against six-major currencies traded higher today at 80.42, compared with the opening levels of 80.28 where it managed to reach the highest at 80.48 and the lowest at 80.16.
Mixed data was presented by the Euro-Zone nations, where consumer and services confidence came out pessimistic, while the economic and industrial confidence surged higher than expected, reflecting the difficulties faced by the 17-nation economies in handling with debt issues.
China announced it has been increasing its purchases of European debt, including Spain's bonds, while Portugal successfully auctioned and sold nearly €500 million of government bonds yesterday.
The EUR/USD pair fell on the daily scale with signs of further bearishness throughout today. The pair breached 1.3120 levels, where it's currently trading at 1.3100; this is compared with the opening levels of 1.3147. The pair managed to set the highest at 1.3170 and the lowest at 1.3088.
Further bearishness is expected, as the pair targets 1.3100, which if breached, would pave the path for the pair to target 1.2970 levels.
As for the pound, the cable rebounded from the resistance at 1.5505, where it's currently trading at 1.5480. so far, the pair managed to set a high of 1.5562 and a low of 1.5463. With expectations of sideway trading, the pair's trading range would be bounded throughout today between the support at 1.5390 and the resistance at 1.5510.
The dollar traded near the opening levels against the yen, as it inched lower to 83.10, compared with the opening levels of 83.23, while setting a high of 83.38 and a low of 82.86.
The pair's trend remains bearish for this week with fluctuation to be noted throughout the week along with a minor correction to the upside. The pair's nearing 83.00, with the Stochastic Oscillator heading towards an overbought area on the daily scale, the pair might witness a correction later on today that would allow it to re-test levels at 82.00 where obtaining a daily closing below this level, would pave the path for the pair to target 81.90.