Risk Aversion is dominating financial markets on Wednesday, as investors went for havens, lower-yielding assets and currencies including the U.S dollar, where we saw the U.S dollar pick up gains unlike other major currencies amid pessimism surrounding the markets due to Europe's deepening debt crisis.

Investors were much concerned as costs of insuring Spanish, Italian and French government debt against default climbed to euro-era record and Germany failed to muster sufficient bids at an auction of benchmark 10-year bunds, triggering concerns that another euro bloc will be engulfed into the festered debt crisis.

in addition, sentiments were blurred on Wednesday, with data from the U.S economy reinitiating signs the economic recovery is losing pace, where in one hand, orders for durable goods and personal income beat forecasts, while on the other hand, personal outlays and the U.S jobless claims eased below median estimates, adding signs that the U.S economy is struggling thoroughly to seek safety.

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 78.48 to currently trade at 79.04 recording its highest level at 79.18 and its lowest at 78.37.

As the dollar Gained Strongly, gold prices dropped to reach $1696.24 since the opening level of $1701.14, while Oil declined as well in light of risk aversion to reach $96.85 after opening at $97.69 per barrel.

The Euro fell against the US dollar on Wednesday, after opening at $3518 as the EURO/USD currently trades around $3358, while recording a high of $3531 and a low of $1.3326. Accordingly, the pair will be targeting the next support level at $1.3350, while the resistance level remains at $1.3380.

The British Pound eased against the dollar, where the pair is currently trading around $1.5523 after opening at $1.5644 levels, while recording a high of $1.5655 and a low of $1.5497. If the GBP/USD breaches the key support level at $1.5475 then the pair be targeting the next support level at $1.5415, however, the $1.5580 remains as the current resistance level.

Last but not least, the U.S dollar slid before the Japanese Yen on Wednesday, as the USD/JPY pair started trading at ¥76.98, while recording the high of ¥77.58 and a low of ¥76.92 and currently trading at ¥77.35. accordingly, the JPY/USD pair will continue to trade within the ¥77.30 resistance level and ¥76.95 support level.