Financial markets witnessed a wave of risk-aversion on Thursday, especially the currencies markets in light of the growing demand on low-yielding assets, and for the meantime, the U.S dollar seems to be pulling strength against most of it peers amid the state of anticipation that have been straining the global markets as traders are awaiting the Euro-Area leaders to meet next on October 23.
If truth be told, markets are being luscious to get further clues on the latest developments on Europe's debt crisis and as we can see, investors are growing pessimistic regarding the recently made efforts as some suggest that the EU leaders are too far from reaching a final cure to halt the suffering of the indebted countries.
While other suggested the long-time efforts will turn fruitful after a German government spokesman stated thatFrance and Germany expressed their mutual concern on the need for a quick and ambitious plan in order to contain Europe's debt crisis.
The 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 from today's opening level of 77.24 to currently trade at 77.31 recording its highest level at 77.50 and it's lowest at 76.71.
Gold prices dropped to reach $1612.27 per ounce since the $1641.16 opening level. Oil prices fell as well to $84.96 after opening at $86.23 per barrel.
The Euro/USD pair fell from the $1.3767 opening level, while recording a high of $1.3486 and a low of $1.3656, where the pair is currently trading at $1.3705 levels, thus the pair is targeting the next support level at $1.3680 after its managed to breach the key support level at $1.3720.
The GBP/USD pair dropped after opening at $1.5771 levels, while recording a high of $1.5804 and a low of $1.5682, while the pair is currently trading at $1.5754 level, keeping in mind, the pair is trying to breach the $1.5720 support level and if the pair manages to breach this level, then the next support level will be at $1.5690.
Moving to the Japanese Yen, where the JPY/USD fell to currently trade at ¥76.94 after opening at ¥78.83, while recording a high of ¥77.08 and a low of ¥76.94. Now, the pair is trading within the resistance level of ¥76.95 and the support level of ¥76.60.