The euro settled against the dollar above 1.4900 after steady and tranquil trading was witnessed following the hurricane the rumbled across the currencies market. The euro traded today among its highest recorded at 1.5018 and the lowest set at 1.4825, and technically we can see that the downside wave stopped at its final minutes before breaching the critical 1.4820; where breaching the latter would have intensified the bearish wave.
The U.S session starts with no fundamentals queued for today as the market continues to ravel around the turn in events and contemplating the consequences of Dubai World's rescheduled debt. Trading volumes have declined as though American markets are back today yet are not at full capacity still as the pair consolidates amid the average range of trading.
Sterling is crawling gradually to the upside in an attempt to diminish some of its hefty losses versus the dollar. The obvious anxiety and fear in the market over the subsequent effects on the fragile British economy, shall Dubai indeed default on its sovereign debt, is evident since they are to be the worst affected by the situation shall it materialize. Nevertheless, sterling is in need of this upside correction which was capable which was capable of taking it back above 1.64 rising from its lowest recorded at 1.6268. Generally, the pair's trading is still very negative over the entire day where it slumped from its highest recorded at 1.6532.
The Japanese yen is trading bearishly against the dollar now after it recorded its highest since 1995. Trading stabilizes among 86.00 levels near the highest recorded for the pair today at 86.82; where the yen already managed to strengthen today to take the pair to record the lowest at 84.79. Traders now fear the materialization of intervention intentions after the strong rhetoric the Japanese Finance Minister has send which was the major driver for the yen to weaken again versus greenback.
We can describe the day as highly volatile in financial markets, and managed to attract a lot of attention despite low trading volumes. We have seen severe and volatile fluctuations that might be the essence of trend alteration for a number of currencies, commodities and also indices.