The U.S. dollar extended the gains recorded in the past session amid rising debt woes and jitters in Europe, which supported demand for the low yielding currency to trade higher today, forcing negative demand for other major currencies, metals and commodities.
The U.S. dollar index (USDIX), opened today in Asia at 76.47 and recorded the highest at 77.48 and the lowest at 76.16, and is currently trading around 77.31.
Today, the Greek Prime Minister, George Papandreou announced that Greece will hold a general referendum on the 130 billion euros aid deal, in attempts to quell anti-austerity protests, where the Prime Minister said that Greeks must decide the fate of their own country; however, this announcement pressured the euro further to the downside today ahead of the European Central Bank rate decision and also ahead of the G20 meeting on November 3 and 4.
The EUR/USD pair opened the session at 1.3857 and recorded the highest at 1.3870 and the lowest at 1.3648, and is trading now around 1.3686, where the announcement of the general referendum in Greece supported the dollar to gain strength against the fragile euro, with all eyes focused on the implementation of the final plan approved by leaders.
Moreover, the sterling pound lost strength again against the U.S. dollar despite the cheerful gross domestic product figures, which showed that the Kingdom's economy grew beyond expectations by 0.5% compared with the previous 0.1% slight expansion seen in the second quarter.
On the other hand, manufacturing data showed that the performance of the manufacturing sector contracted to 47.4 in October lower than expectations and the previous 51.1, which pressured the sterling pound further to the downside.
The GBP/USD pair opened the session today at 1.6084, and recorded a high of 1.6092 and a low of 1.5897, and is currently hovering around 1.5920.
The Australian dollar also lost strength against the U.S. dollar, especially after the Reserve Bank of Australia Monetary Policy Committee voted to cut rates by 25 bp to fight the weakening growth amid rising global challenges in addition to the deepening debt crisis.
The AUD/USD pair opened the session in Asia at 1.0530, and recorded the highest at 1.0565 and the lowest at 1.0269, and is currently trading around 1.0302.