The dollar stabilized in the middle of the European trading close to its highest levels in eight weeks with renewed sovereign debt woes in the financial markets. Confidence was affected by the downbeat data from the Chinese economy which assured the slowing pace of growth in the manufacturing sector in May which was worse than expectations.
The fears fueled risk aversion and fueled dollar haven demand. The USDIX is currently trading around 76.22 recording the intraday high of 76.36 and the low of 75.68.
The euro continues its strong southern trip versus the dollar since Friday to stabilize below 1.4100 after Fitch cut Greece's credit rating by three steps while S&P downgraded Italy's outlook to negative. The pair is currently trading around 1.4010 recording its lowest at 1.3968 and the highest at 1.4146 and technically its expected to continue the downside move towards 1.3910 as far as stability remains below 1.4295.
The pound fell sharply against the dollar amid the lack of data as investors await the first quarter preliminary GDP estimate which is expected unrevised, especially amid the difficulties facing the royal economy, such as high inflation rates, unemployment and high deficit and public debt. The pair is currently trading around 1.6131 recording the intraday high of 1.6232 and the low of 1.6106 and technically it will likely continue the bearishness towards 1.6045 as far as the pair remains steady below 1.6415.
The dollar moved higher versus the yen towards 81.85 as risk aversion did do the yen well against the dollar's strength. The recorded the intraday high of 81.86 and the low of 81.45 and its expected to keep rising towards 82.50 as far as trading remains above 80.25.