The U.S. dollar declined today extending the losses seen in the past session, affected by the slight optimism that spread in the market, where global equities are trading in green, while major currencies were able to gain strength against the low yielding currency.
The U.S. dollar index (USDIX), which tracks the dollar's movement against a basket of foreign currencies, retreated sharply after starting the session at 77.08, and recorded the highest at 77.18 and the lowest at 76.57, and is trading now around 76.70.
The euro appreciated against the greenback today on a report in the Guardian newspaper that European Union Leaders could expand the European Financial Stability Facility fund to two trillion euros, while Germany and France could come to an agreement to expand the support for European banks and other nations within the zone.
The EUR/USD pair advanced after opening the session at 1.3750, and recorded a high of 1.3867 and a low of 1.3724, and is trading in the moment around 1.3823.
On the other hand, the common currency, the euro, was able to gain strength not only against the U.S. dollar, but also against the Swiss franc amid rumors in the market that the Swiss National Bank could intervene again and set a minimum exchange rate for the EUR/CHF pair, where the Bank explained before the readiness and ability to defend the franc exchange rate, especially after the rapid appreciation seen on the franc hurt the Swiss economy and also the exports.
Concerning the EUR/CHF, the pair advanced after starting the session at 1.2358, and recorded the highest at 1.2466 and the lowest at 1.2347, and is currently hovering around 1.2430.
Moreover, the sterling pound was able to hold onto the gains recorded earlier today, despite the Bank of England Minutes, which showed that all of the Monetary Policy Committee voted to increase the quantity of the Asset Purchases Facility, where the Committee judged that the need for further monetary stimulus had become clear, especially when the Bank expects inflation to undershoot the 2% target over the medium term, despite that inflation reached 5.2% in September.
U.K. economy was affected by the downbeat global expansion, the tensions added to strain on banks and the retreating exports, which forced the Committee to act in favor of growth rather than controlling inflation.
The GBP/USD pair inclined to a high of 1.5817 after reaching the lowest at 1.5694, noting that the pair opened the session in Asia at 1.5711 and is currently trading around 1.5798.