The Euro extended the severe drop Tuesday; while European stock markets erased all the gains acquired throughout 2010 due to investors' fear from Greece's debt problems that hammered down global markets severely today, where the Euro experienced a Deja Vu as it returned to early 2009 levels. Commodities and manufacturing shares dropped as China's manufacturing data signaled a drop in activity, where China is considered the engine for global economies that will help them emerge from the recession that struck the world in late 2007.
The Dollar is seemingly the only safe-haven to investors as they sought low yielding assets, where it was boosted by better than expected data released from the housing sector, where the number of previously owned houses rose in the month of March by 5.3 percent, compared with market estimates of 5.0 percent.
Fears of Greece's bailout plan which is estimated to be around €110 billion, and is yet to be approved by E.U. leaders spurred concerns that the huge bailout plan would make it harder for other European countries such as Italy, Spain and Portugal to acquire rescue packages from the European Union where all face the same faith as Greece.
The U.S. Dollar Index, a gauge for the dollar's performance against a basket of currencies, rose in today's trading to 83.130, compared with the opening levels of 82.359, where the index managed to set the highest level for today at 83.263 and the lowest at 82.289. Gold slid to trade at $1170.50 an ounce, while oil is trading at $83.16 a barrel.
As for trading, the euro-dollar pair plunged severely to trade at a one-year low, where the pair opened today's trading session at $1.3191, and managed to set the highest level for today at $1.3213, before it dropped to the lowest level at $1.3019, while currently trading at $1.3033. The pair breached a major support level at $1.3090 that paved the path for further short-term declines, as the pair is now targeting levels at $1.2960 and $1.2915, But in order for the pair to achieve those targets, levels at $1.3090 must remain intact.
Moving to the Royal currency, the GBP-USD pair dropped in trading as it opened today's trading at $1.5241, where the pair set the highest level for today at $1.5263 and the lowest at $1.5088 while currently trading at $1.5173. The pair breached the support level at $1.5225, which paved the way for the pair to target the $1.5070 and $1.5030 levels, but the previously mentioned support levels must remain intact in order for the pair to achieve these targets.
Finally talking about the USDJPY pair, it dropped slightly; where today's opening levels were set at 94.53 while it's currently trading at 94.41, after setting the highest for at 94.98 and the lowest at 94.31. Expectations show that the pair will descend on intraday basis with targets at 94.00, which is a pivot support level, where a breach for this level would pave the path for the pair to target the 93.65 levels, while failing to breach the 94.00 would shift the direction of the pair to the upside and the upcoming targets for the bullish scenario are set at 95.60.