Nearly a week of slump in stocks, high yielding assets and commodities continued, where investors' continuous fears from Europe's sovereign debt problems persist and overshadow all the news that is released from major economies around the globe. Investors' fears from Europe's debt problems and its ripple effect on global economies became valid today, as the leading indicators in the U.S., a gauge that provide futuristic outlook for the U.S. economy, dropped for the first time since March 2009, along with the Labor Department's weekly jobless claims, which showed that the labor sector in the U.S. continues to suffer from severe weakness. Traders targeted low yielding assets along with treasuries as a safe investment, commodities tumbled and the euro weakened in trading.
The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, traded at its opening levels for today at 86.46, where the index reached the highest levels today at 86.80 and the lowest at 86.08. Gold dropped to trade at $1183.26 an ounce, while oil sank to trade at $68.85 a barrel.
As for trading, the euro-dollar pair weakened and dropped to trade at $1.2347, compared with the opening levels for today that were set at $1.2414, while it managed to reach the highest leveltoday at $1.2436 and the lowest at $1.2294. Expectations show that the pair will descend further as it breached the support at $1.2430 and is targeting levels at $1.2270 then $1.2210.
Moving to the Royal currency, the GBP/USD pair slashed yesterday's gains as the pair reversed its trading and descended to trade at $1.4320, compared with the opening levels at $1.4441, where it managed to reach the highest level today at $1.4464 and the lowest at $1.4229, meanwhile, Expectations show that the pair will descend further on intraday basis to target $1.4200, as it managed to breach the support at $1.4400.
Finally talking about the dollar's performance against the Yen, the USD/JPY pair dropped in today's trading, where the pair opened its trading at 91.67 while it managed to reach the highest level today at 91.87 and the lowest at 88.94, meanwhile, the pair is trading at 89.47. The pair managed to breach the support levels at 91.00 and 90.20, thus providing it with enough momentum to target the 89.50 levels and then 89.00, noting that levels 90.20 must remain intact in order to maintain the descending pattern.