The world's reserve trimmed off some of the losses that were acquired earlier today after investors' confidence were boosted on retail sales gain as projections signaled that sales might surpass estimates as the earning season boosted demand due to the better than expected results that were presented by various companies around the U.S., meanwhile investors believe that Europe banks will be able to pass stress tests.
Optimism drove indices higher, led by the financial sector where the S&P 500 index gained more than 1.60%, due to the projections that were released by State Street Corp (NYSE: STT) for the upcoming earning release, where the bank stated that it projects earnings of $0.87 a share, which tops analysts expectations, accordingly, the share rallied by more than 10.0 percent so far.
The U.S. dollar index, which tracks the performance of the dollar against six major currencies, dropped on the daily scale, reaching 84.04, compared with the opening levels of 84.14, which enabled commodities to rise due to the inverse relationship between the two, where gold last traded at $1197.30 an ounce, compared with the opening levels of $1192.42 an ounce, meanwhile, crude August delivery contracts traded at $73.71 a barrel, compared with the opening levels of $72.07 a barrel.
As for trading, the euro-dollar pair traded lower on the daily scale as the dollar managed to slash its earlier losses against the European common currency, to currently trade at $1.2611 compared with the opening levels of $1.2624, where it managed to reach the highest levels today at $1.2643 and the lowest at $1.2551. The pair has a support around $1.2540, accompanied by Stochastic riding of negative momentum, accordingly, the pair is projected to rise and target levels at $1.2780, keeping in mind that trading must remain above $1.2470 in order to establish these targets.
Moving to the Royal currency, the pair rose on the daily scale to trade at $1.5203, compared with the opening levels of $1.5147, where it managed to reach the highest levels today at $1.5213 and the lowest at $1.5079. Furtherintraday upside movementis expected today, as the pair managed to build a strong trading base above $1.5080, leading the pair towards $1.5300 levels.
Finally talking about the dollar's performance against the Yen, the USDJPY pair traded below its opening levels of 87.51, where it's currently trading at 87.31, the pair managed to reach the highest levels today at 87.67 and the lowest at 87.00. a bearish intraday trendis projected that will start with the breach of 87.30 to pave the way towards 86.60 then 85.35. Keep in mind the importance of trading below 88.00 - 88.40 to insure achieving the suggested scenario.