At the beginning of a new week, the U.S. dollar opened with a bullish gap amid rising debt concerns in Europe, especially after European lawmakers failed to ease rising concerns and renewed fears regarding a Greek default, where investors were disappointed after Jean-Claude Junker, who chairs the European finance ministers meetings, delayed the decision of handing Greece the next tranche of the 2010's bailout package to be made in October.
Europe remains the main focus in the market today, especially with the lack of fundamentals from major economies, where rising concerns and fears supported demand for safe havens to surge, as we can see the U.S. dollar, gold and the Japanese yen are trading positively today.
Moreover, pessimism dominates stock markets, as we noticed that Asian stocks closed in red, while all of the European main indexes are trading now negatively, which has supported demand for the U.S. dollar to gain more momentum today.
The U.S. dollar index (USDIX), which tracks the dollar's movement against other major currencies, opened the session today at 77.01, compared with the closing in New York session on Friday at 76.58. The greenback also recorded an intraday high of 77.26 and an intraday low of 76.93 and is currently trading around 77.13.
On the other hand, the common currency, the euro, witnessed huge losses today, where after the bearish opening gap provided today, the currency also retreated further against the dollar to the downside amid rising debt concerns and the financial and political instability in the zone.
The EUR/USD pair opened the session today at 1.3691, compared with the closing in New York session on Friday at 1.3786, extending the losses recorded in the past session. The pair also recorded the highest at 1.3713 and the lowest at 1.3631, and is currently hovering around 1.3651. Technically, consolidation below 1.3665 suggests more downside movement today, and the target will be the 1.3320 support level.
The dollar also gained against the Swiss franc today, especially with the bullish opening gap provided earlier, where the USD/CHF pair advanced after the opening of 0.8804, compared with the closing of 0.8765 on Friday. The pair recorded a high of 0.8859 and a low of 0.8793, and trades now around 0.8831.
On the other hand, the U.S. dollar retreated against the safe haven, the Japanese yen, which confirms the rising demand for safe havens and the pessimism that dominates markets now. The USD/JPY pair retreated today after the opening of 76.88 to currently trade around 76.71. The pair reached a high of 76.97 and a low of 76.64.
The pound is very volatile today and is fluctuating heavily, however negatively biased. The GBP/USD slumped to a low of 1.5682, after reaching a high of 1.5755. The pair also provided a bearish opening gap today at 1.5792 after closing in New York on Friday at 1.5781.