The U.S. dollar and the Japanese Yen rose strongly against most major currencies after investors indulged in a huge selloff wave on risk aversion, where investors shunned risky assets and headed back for low yielding assets including the Dollar and the Yen

Rate decisions from Europe also boosted the U.S. dollar, where both the BOE and the ECB left benchmark interest rates unchanged and signaled rates will remain unchanged next month, as despite the rise in inflation recently, but it doesn't need further tightening, especially by the ECB, while the BOE completely shrugged any chances it will raise rates soon, since the BOE expects growth to suffer should interest rates rise.

Moreover, the unexpected jump in jobless claims left investors worried ahead of Friday's jobs report, where it seems that conditions in the labor market had worsened through April, and accordingly, fears spread over the outlook for global growth.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose on daily basis to trade at 73.85, compared with the opening level at 7296, while recording a high of 73.93 and a low of 72.81. Gold prices dropped heavily due to the strength of the dollar, to trade at $1484.15, compared with the opening level at $1515.65 an ounce, while oil prices declined to trade at $102.92, compared with the opening level at $108.54 a barrel.

The Euro declined heavily against the Dollar, as the ECB confirmed they will keep the current monetary policy unchanged, where the ECB signaled they will keep rates unchanged at their next meeting in June. The EUR-USD pair is trading at $1.4581, compared with the opening level at $1.4827, while recording a high of $1.4899 and a low of $1.4576. The pair is now trading below the $1.4605 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.4520 support level, however, if the pair rise above $1.4605, the next target will be the $1.4715 resistance level.

The British Pound declined as well today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6420, compared with the opening level at $1.6486, while the pair recorded a high of $1.6543 and a low of $1.6404. The pair is now trading below the important level at $1.6455 and so long it continues to trade below this level, the next target is set at $1.6385, however breaching the $1.6455 level to the upside would send the pair to the $1.6525 resistance level.

The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥80.17, compared with the opening level at ¥80.60, while recording a high of ¥80.65 and a low of ¥79.56. The pair is now trading below the ¥80.75 resistance level, which suggests that the way is open to reach the ¥79.80, but the pair must remain below ¥80.75 in order for this bearish scenario to continue, however, breaching the ¥80.75 to the upside would send the pair to the resistance level at ¥81.50.