Optimism managed a find an exist to financial markets on Tuesday, sending traders toward higher-yielding including the euro and the sterling pound, following better than forecasted data out from Europe and the U.S.
Germany's IFO business climate, current assessment and confidence improved for the second month in a row, while the U.S housing starts and building permits hit a one-year high in November, adding to signs that both economies are not likely to face a recession any time soon.
Furthermore, Markets rebounded after the a Spanish bond auction witnessed strong demand and slapped down yields accordingly, therefore, positive was mainly spread among finance markets and traders couldn't help themselves to have a mild taste of risk and embraced higher-yielding currencies in return.
Meanwhile, the dollar dropped versus a basket of currencies including the euro, the pound and the Yen on Tuesday, after the US dollar index opened at 80.32 levels today, recording its highest level at 80.34 and lowest at 79.59 and currently trades around 79.84 levels.
Gold prices gained after the dollar fell to trade around $1613.78 an ounce after opening at $1593.33 levels, while crude oil prices surged as well after oil contracts started trading at $94.70 levels to currently trade around $97.26 a barrel.
Moreover, the Euro rose versus the dollar on Tuesday, as the EUR/USD pair started trading at $1.3006 while recording a high at $1.3132 and a low at $1.2995 to currently trade around $1.3076, meanwhile, the pair seeks to breach key resistance level of $1.3080, and if so, the pair next resistance level will be at $1.3120 and the $1.3080 resistance level will switch to become a support level which is currently at $1.3045.
The Sterling Pound inclined against the dollar today, after the GBP/USD pair opened at $1.5507 levels and recorded its highest at $1.5700 and lowest at $1.5502 to currently trade around $1.5659, therefore, the pair seeks to breach a $1.5680 resistance level and if so, the pair will be targeting the next resistance level of $1.5720 level, and $1.3080 will become the next support level, while the pair trades now above a current support level of $1.3045.
Finally, the dollar dropped against the Japanese Yen on Tuesday, after the USD/JPY pair opened at ¥78.01 and recorded its highest at ¥78.05 and lowest at ¥77.71 to currently trade around ¥77.85, so the pair is still chained between the ¥78.10 resistance level and ¥77.60 support level.