Euro Steady After Cancelling EU Leaders' meeting

By @ibtimes on

Growing uncertainty over Europe's debt crisis prompted currencies to trade narrowly on Tuesday, especially after the EU finance ministers' meeting scheduled tomorrow in Brussels to discuss how to leverage the European rescue fund was cancelled earlier on the day, leaving only concerns and doubts to surround the outlook of Europe's debt crisis throughout today's trading.

Sentiments were quite corroded in the U.S as well, after the U.S economy released gloomy data over U.S confidence and housing this morning, signaling that U.S consumer sentiments have dampened to its lowest in two and half years in October, while U.S home prices dropped around 20 metropolitan cities in August according the Standard & Poor's CaseShiller back in August.

Furthermore, German Chancellor Angela Merkel stated out in draft text prepared to EU Leaders' Summit tomorrow that her country opposed the inclusion of a reference to the European Central Bank continuing its bond-purchasing program, offsetting bids the ECB will extend a large-scale securities purchasing plan to ease the pressures on indebted countries in Europe.

On the other hand, the U.S dollar smashed a WWII record low against the Japanese Yen, amid speculation Bank of Japan may intervene in the currency markets to tame the outrageous Yen and forge more monetary policy easing in light of the European turmoil and growing demand on safe havens.

Meanwhile, the Dollar index which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, fell from today's opening level of 76.21 to currently trade at 76.14 recording its highest level at 76.44 and its lowest at 75.94.

Gold prices surged advanced amid growing demand on safe havens, to currently trade at $1700.11 per ounce from the opening price of $1650.19 per ounce. Oil gained as well to reach $93.65 after opening at $91.94 per barrel.

The Euro steadied against the US dollar after EU meeting was cancelled today, as the EURO/USD traded at $1.3924 compared to the opening level of $1.3920, while recording a high of $1.3690 and a low of $1.3848. Accordingly, the pair will be targeting the next resistance point at $1.3950, while the support level remains at $1.3880.

The British Pound rose faintly against the dollar on Monday, where the pair is now trading at $1.6010 after opening at $1.5996 levels, while recording a high of $1.6039 and a low of $1.5956. The GBP/USD will be targeting the next resistance level at $1.6075, as long as the pair is trying to breach the key resistance at $1.6025, however, the $1.5935 remains as the support level.

Last but not least, the U.S dollar fell against the Japanese Yen at today's trading, as the USD/JPY pair started trading at ¥76.20 this morning, while recording the high of ¥76.30 and a low of ¥75.73 and currently trading at ¥75.96. The JPY/USD pair will be targeting the next ¥75.880 support level after breaching the key support at ¥76.10, however, the resistance level remains at ¥75.10.

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