Investors continue to target low yielding assets and gold in order to ensure a safe investment to their wealth. The Euro continued to trade at a four-year low against the dollar, while the pound got hammered from Fitch Rating Co remarks regarding U.K.'s budget deficit cuts, where it stated that the royal country needs to accelerate its debt cuts, shedding spotlight back at Europe's debt problems that hammered down stocks trading in Europe, forcing stocks to plunge by closing bell.
Meanwhile, stocks, gold, oil and the Dollar received a big boost from Fed chairman, Ben Bernanke's remarks regarding the outlook of the economy, where he said during an interview on Monday that the economic recovery is intact, while hoping that the economy won't fall into double dip recession.
The U.S. dollar index, a gauge for the dollar's performance against a basket of currencies including the Euro, the Pound and the Yen, traded at the opening levels of 88.19, after reaching a high of 88.58 and a low of 87.96. Gold traded at historic new highs of $1251.83 an ounce, which marked the highest for today, while currently gold is trading at $1245.25 an ounce, oil rose to trade at $72.10 a barrel, compared with the opening levels of $71.12 a barrel.
As for trading, the euro-dollar pair traded slightly higher, but continued to trade at a four-year low against the dollar, where it's currently trading at $1.1962, compared with the opening levels for today that were set at $1.1923, while it managed to reach the highest levels today at $1.2009 and the lowest at $1.1900. Expectations show that the pair will descend further with targets at $1.1900 that requires stability below $1.2040.
Moving to the Royal currency, the GBP/USD pair dropped on the daily scale to trade at $1.4408, compared with the opening levels of $1.4465, where it managed to reach the highest levels today at $1.4527 and the lowest at $1.4343. A bearish pattern has been completed, and accordingly, further intraday bearishness is projected throughout the remainder of the day; requiring first stability below the neckline of the technical model at $1.4395 and then head towards $1.4230 and $1.4030.
Finally talking about the dollar's performance against the Yen, the USD/JPY pair traded slightly lower from the opening levels of 91.37 as it's currently trading at 91.30, the pair managed to reach the highest levels today at 91.91 and the lowest at 90.82. The pair is nearing the support level for the minor ascending channel at 91.10. This level is required to be breached in order to insure the expected bearish intraday direction for today with targets at 88.60 levels, keeping in mind that a breach of 92.90 will discard those expectations.