The U.S dollar depreciated during the European session to extend the earlier losses at morning affected by yesterday's downbeat U.S data that confirmed the decline in the ADP employment index in May, which came worse than the last reading and expectations, moreover, the Institute for Supply Management manufacturing index declined beyond expectations and prior reading.
Today investors are awaiting the jobless claims report for last week, where the ADP released on Wednesday signaled weakness in the labor market, which mounted concerns regarding the jobs report for April on Friday. The USDIX is trading around 74.35 and recorded a high of 74.93 and a low of 74.28.
The Euro inclined against the U.S. dollar today, after the German Chancellor, Anglia Merkel, declared that the European Union will stick to the common currency system despite the debts crisis, where Merkel confirmed that futuristic expectations of growth are very positive in Germany.
Positive news also supported the Euro that Spain sold governmental bonds valued at 3.95 billion Euro, with due date in 2014 and 2015. The pair is currently trading around $1.4465 and recorded the high of $1.4485 and the low of $1.4307, technically speaking, the pair is expected to continue its upward trend aiming at the target of $1.4650, but should stabilize above $1.4335
The Pound inclined against the dollar to stabilize above $1.6300 after the positive data regarding the construction sector in UK, which came better than expectations and the previous reading despite the negative data yesterday regarding the performance of the manufacturing sector in UK, where it declined during the past months affected by the austerity plan. The pair is currently trading around $1.6369 and recorded the high of $1.6415 and the low of $1.6305, technical wise, the pair is expected to remain among the pivotal support at $1.6125 and the resistance at $1.6520.
The U.S. dollar declined against the Japanese Yen, after the Japanese PM, Naoto said within his party that he will step down after containing the nuclear crisis successfully in Fukushima. The pair is trading around 80.75 and recorded the high of 81.31 and the low of 80.68, from a technical point of view the pair is expected to decline in case 80.75 is obviously breached and the pair stabilized below it targeting 79.00.