The dollar continues its rise since morning after the Feds chairman Bernanke assured that the recovery in the United States remains frustratingly slow and that increased risk aversion and volatility with return to the dollar as Bernanke did not assure a new round of stimulus for now.
The economic recovery is still weak especially after the sluggish performance of the US labor market and high unemployment rates that reached 9.1% the highest during this year.
The USDIX is currently trading around 73.76 recording the intraday high at 73.80 and the low of 73.50.
The euro fell against the dollar to reach 1.4623 levels ignoring the economic fundamentals which confirmed the stability of the preliminary GDP reading in the euro zone during the first quarter supported by the significant improvement in the capital investments and government spending.
The euro was pressured by the negative impact of the view from Germany's finance Wolfgang Schaeuble, as he said that bondholders must be part of the new bailout for Greece. He said that they should be a substantial share of the second bailout and proposed a swap of the debt, which on the contrary to what the ECB favors; this plan might be seen as default by credit-rating agencies.
The pair is currently trading around 1.4625 recording the intraday high at 1.4675 and the low of 1.4615, and is expected to rise towards 1.4725 provided stability prevails above the 1.4455.
The pound fell sharply against the greenback after one of the analysts at Moody's, Sarah Carson once said that there's a probability that United Kingdom might lose its top Aaa credit rating, with the slow pace of economic growth in the United Kingdom, and if the government's fails to fulfill its commitment to reduce the overall budget deficit.
The pair is currently trading around 1.6370 recording the intraday high at 1.6450 and the low of 1.6352 compared to the opening of 1.6435; technically the bullish possibility remains valid towards 1.6650 provided stability remains above 1.6370.
The dollar fell against the Japanese yen to the levels of 79.78, as investors tend to buy low-yielding currencies as a result of the declining risk appetite among investors on fears in the markets about the sovereign debt crisis and slowing global growth. The pair is currently trading around 79.75 and recorded the highest at 80.05 and lowest at 79.65, and technically is expected to continue the intraday bearishness towards 78.00 provided stability prevails below 80.75.