The US dollar index, a six-currency gauge for the dollar performance, rose on the daily scale, reaching 78.36, compared with the opening levels of 78.21. the index reached the highest at 78.52 and the lowest at 78.08.
Ahead of the release of US home data, the dollar fell after Financial Times reported that Ireland’s budget deficit will be higher than expected, while expectations for the euro “looking bleak” as stated by Nobel prize-winning economist Joseph Stiglitz.
The European shared currency depreciated against the dollar from six-months high on concerns that weak economic conditions along with debt pressures will weigh down on the region’s growth.
Furthermore, central bank’s around the world are signaling the need for additional quantitative easing measures, where earlier last week the Federal Reserve and the BoE hinted for the possibility of a second round of stimulus, where to join the BOJ in their decision as speculations for additional credit-easing measures will be announced after the BoJ two-day meeting conclude tomorrow.
Meanwhile, the Franc and Pound gained against the euro on concerns that Greece budget plan will enhance demand for Swiss currency as a safe haven, the pound appreciated by 0.6 percent against the Euro after the Euro-Zone producer prices rose by 0.1 percent, compared with the previous and the expected 0.2 percent.
The Swiss Franc also inclined against the dollar to a record 97.05 centimes.
The Euro fell against the dollar to trade at 1.3692, compared with the opening levels of 1.3800. The pair is projected to rise on a weekly scale, targeting 1.3885 then 1.4000, noting that a breach for 1.3570 will weaken the chances of achieving the suggested targets.
The pound surged against the dollar to trade at 1.5843, compared with the opening levels of 1.5798. Expectations signal that the pair will witness a bullish trend this week, targeting 1.6000 but for these expectations to prevail, the pair must build a strong base above 1.5700.
With regards to the yen, the dollar rose against the Japanese currency to trade at 83.36, compared with the opening levels of 83.23. Today’s rise is considered correctional move for the pair, where a bearish trend on a weekly basis is still in play, targeting 83.00 and 82.40, but in order to achieve the suggested targets, stability below 83.50 must be acquired.
Sweden’s Krona inclined against the euro as well, on speculations that the upcoming industrial production report from the Scandinavian country will probably show an increase for the sixth-consecutive month.
Expectations signal that industrial production will rise by 1.0 percent in August, while 17.1 percent on the yearly scale.
As of 13:45 the Krona appreciated to 9.2379 per euro, meanwhile the Krona fell against the dollar to 6.7418 per dollar.