Investors feared that UK's retail data might witness weakening in June due to elevated inflation levels, those fears were discarded as the index rose beyond expectations to signal that the British consumer is still supporting growth despite tight disposable income.
In addition, various sectors from the Euro-Zone signaled that conditions in the manufacturing and industrial sectors continue to improve, despite the fact that investors await the results of bank's Stress Test that will be published Friday.
Improving conditions encouraged investors to target risky investments such as stocks, commodities along with high yielding assets.
The dollar traded lower as witnessed on the U.S. dollar index, where uncertainty about the outlook for the U.S. economy, damped demand for the single currency and trading and pressured investors to head to Carry Trade techniques in the currency markets.
The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, dropped on the daily scale to trade at 82.87, compared with the opening levels of 83.19. Gold rose to trade at $1187.66 an ounce, while oil advanced to trade at $77.01 a barrel.
As for trading, the euro-dollar pair slashed most of yesterday's losses where the pair returned to trade above the support levels at $1.2760 that was breached yesterday. The pair is trading at $1.2830, compared with the opening levels of $1.2750. The pair reached the highest at $1.2851 and the lowest at $1.2735. The pair is attempting to build a strong trading base above 1.2820 in order to appreciate further and target the resistance at $1.2875.
Moving to the Royal currency, the pair slashed yesterday's losses as well where the pair is currently trading at $1.5276, compared with the opening levels of $1.5164. The pair reached the highest at $1.5289 and the lowest at $1.5148. The expected direction is bearish over intraday basistargeting 1.5080 then 1.4960 and requires stability below 1.5355.
Finally talking about the dollar's performance against the Yen, the USDJPY pair traded lower from its opening levels of 87.01, where it's currently trading at 86.60, the pair managed to reach the highest levels today at 87.08 and the lowest at 86.32. A bearish intraday trendis projected with targets at 85.95, keeping in mind that a breach of 87.20 would cause the pair to appreciate further to target 88.00 levels.