Investors turn bearish, Euro hits four-year low against the Dollar

By IBTimes Staff Reporter | May 17 2010 1:37 PM

Pessimism is the dominant theme for today where equity markets around the world closed mostly on RED, while stocks in the U.S. have been struggling from the start of today's trading session. Concerns about Europe's debt crisis still lay a huge burden on investors and markets, especially the European common currency, where it struck a four-year low against the dollar in todays trading as it reached $1.2232.

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But a rebound in the Euro, to trade near its opening levels caused the U.S. Dollar index to retreat on the daily scale, as the Euro weighs nearly 70% of the index that measures the performance of the Dollar against a basket of currencies, accordingly, the U.S. dollar index dropped to trade at 86.555, compared with the opening levels of 86.861, where it reached the highest levels today at 87.063 and the lowest at 86.051.

The inverse relationship between commodities and the greenback, forced metal and oil prices to retreat on the daily scale, where gold returned to trade at $1126.12 an ounce, compared with the opening levels of $1231.35 an ounce, meanwhile oil contracts for June delivery dropped to trade at $70.38 a barrel, compared with the opening levels of $71.80 a barrel.

As for trading, the euro-dollar pair is currently trading at the opening levels of $1.2341, where it managed to reach the highest for today at $1.2413 and the lowest at $1.2332, meanwhile, expectations show that the pair will continue to fluctuate near the opening levels due to the positive effects from the momentum indicators that is pushing the pair to the upside, but further bearish move is highly projected if the pair manage to close below $12330 levels on the daily basis.

Moving to the Royal currency, the pair extended its fourth-day drop where trading opened at $1.4509 while it managed to reach the highest levels today at $1.4545 and the lowest at $1.4249, while currently the pair's trading at $1.4433, meanwhile, Expectations show that the pair will descend further that will be confirmed if the pair breaches $1.4250 levels.

Finally talking about the USDJPY pair, it rose in todays trading where the pair opened today's trading at 92.22 while it managed to reach the highest levels today at 92.69 and the lowest at 91.74, meanwhile the pair is trading at 92.32, Expectations show that the pair will descend to towards 91.45 then 90.65 that requires stability in trading below 92.85 levels.