The U.S. dollar dropped in the middle of today's trading before the release of the U.S economic data that are expected to show a decline in the industrial production, nervousness and concern are spread in the financial markets with the dominance of the sovereign debt crisis.
USDIX is trading around 75.49 recording the intraday high at 75.78 and the low at 75.43.
The euro rose against the dollar to 1.4225 on the impact of the declaration of the EU leaders to open the doors to the idea of extending the period for Greece to repay its debt. The EU finance ministers have also tabled the solution for Greek debt re-profiling yet as to be seen the last resort for the mounting fiscal challenges. The EU also approved Portugal's rescue loan of 78 billion euro, and this in turn bolstered confidence levels in the ability of decision makers to contain the debt crisis in the euro zone.
The pair opened today's trading at 1.4163 recording the intraday high at 1.4225 and low at 1.4135 with expectations for the upside trend to prevail today with stability above 1.4180; breaching the support levels at 1.4135 will restrict the intraday bullishness.
The Pound surged against the dollar after inflation surged to 4.5% in April confirming the rising inflationary pressures and supporting bets for the BoE to be forced to raise rates to contain price pressures and salvage growth. Sterling declined from the intraday highs versus the dollar as the mixed sentiment prevails over the outlook for the monetary policy with the BoE minutes pending for release tomorrow.
The pair is currently trading at 1.6234 after recording low of 1.6232 and high of 1.6302 and is expected to keep trending lower as far as stability prevails below 1.6258 but if the pair was able to break through 1.6305 then the upward trend will be activated.
The yen rose against the U.S dollar after the Japanese central bank governor, Masaaki Shirakawa, said that the Japanese economy will face a lot of difficulties supporting expectations for further monetary loosening and for record low interest rates. The pair is currently trading around 81.57 recording the intraday high of 81.77 and the low of 80.83 compared to the opening levels of 80.85.