Global indices have entered the bearish move as the $1 trillion package intoxication wares off! Currencies' trading is favoring the dollar and the yen amid wary investors over persisting challenges for European nations and the euro zone and the effect it will have on slowing the recovery. Meanwhile, the jitters extended further with Chinese data reflecting surging inflationary threats and signaling more monetary tightening.
Investors rushed to lock in on yesterday's gains and grew more risk averse which powered the rise of precious metals that surged today as gold grew closer to its all time high above $1220.00, while silver is trading above $19.00 the highest since December 2009.
The euro squandered all its attained gains on the back of the support of the EU to the union and the currency. The euro declined from its highest against the dollar at 1.2802 setting the low of 1.2664 and till now the bias is to the dollar to extend its gains versus the euro as the pair trades among 1.2790 resistance and 1.2700 support.
Sterling on the other hand traded with extensively volatility as the political vacuum continues to pressure sterling with awaited coalition results that are to shape the future outlook for UK according to the government formation. Sterling fluctuated among the high of 1.4886 and the low of 1.4718. The pair's tendencies today were to the downside though in the past three hours sterling managed to incline slightly towards opening levels.
As for the Japanese yen it managed to outpace the dollar and benefited from the bearishness across equity markets. The pair declined from 93.38 towards 91.19, where the pair is trading below 94.00 resistance which might favor the yen over the dollar in the coming period. Currently, the pair is trading among 92.30 support and 93.30 resistance.