The U.S. dollar retreated against major currencies amid the lack of economic fundamentals today, the Euro extended its rise against the Dollar after ECB Chairman said in an interview with the Wall Street Journal that the ECB would respond to higher inflation rates in the Euro Zone by hiking interest rates, ad that would indeed increase the appeal on the Euro as a higher yielding currency.
Also data from Europe signaled ongoing growth in the manufacturing and services sector, although data suggested that manufacturing activities eased slightly, however strong growth in the services sector helped in diminishing the negative impact of easing manufacturing activities.
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, declined on daily basis to trade at 77.97, compared with the opening level at 78.27, while recording a high of 78.51 and a low of 77.81. Gold prices were little changed to reach $1343.47, compared with the opening level at $1345.17 an ounce, and oil prices declined to trade at $87.76, compared with the opening level at $89.15.
The Euro reversed to the upside against the Dollar today, where the EUR-USD pair is trading at $1.3644, compared with the opening level at $1.3619, while recording a high of $1.3686 and a low of $1.3540. The pair is now trading above the $1.3550 level, and so long it remains above this level, we should expect more upside movement and the target then will be the $1.3715 resistance level, however, if the pair drops below $1.3550, the direction on intraday basis will change to the downside.
The British Pound was little changed today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5994, compared with the opening level at $1.5993, while the pair recorded a high of $1.6013 and a low of $1.5921. The pair is now trading above the important level at $1.5910 and so long it continues to trade above this level, the next target is set at $1.6250, however breaching the $1.5910 level to the downside would send the pair to the $1.5770 support level.
The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.43, compared with the opening level at ¥82.60, while recording a high of ¥82.92 and a low of ¥82.30. The pair is now trading below the ¥82.75 resistance level, which suggests that the way is open to reach the ¥81.05, but the pair must remain below ¥82.75 in order for this bearish scenario to continue, however, breaching the ¥82.75 to the upside would send the pair to the resistance level at ¥83.70.