The single currency fell against most of its major counterparts today after the fed signaled further quantitative easing measures to be introduced soon in markets.
The US dollar index depreciated on the daily scale to trade at 77.06, compared with the opening levels of 77.13 where it reached the highest at 77.21 and the lowest 76.97.
Warren Buffet had few remarks regarding the currency war the world is witnessing, which was also the major dominant theme at the G-7 meeting. Buffet expressed his concerns regarding the European common currency where he stated that the Euro would face “Real Challenges” as it appreciates further.
“There’s a real challenge when you try to get a large group of countries with different cultures, different attitudes toward fiscal policy, to share a common currency,” Buffet said, adding that “I think it’s going to be an interesting one to watch.”
The yen weakened against the euro as the fed hinted that consumers in the US should prepare for relatively higher prices to come, where the methods to be adopted by the Fed will lean to trigger inflationary threats to rise over the upcoming period.
Accordingly, investors turned to safe haven investments and targeted commodities, while dampen demand for currencies, especially risky assets.
The Euro appreciated against the dollar in today’s trading to 1.3964, compared with the opening levels of 1.3924, where it managed to reach the highest at 1.4001 and the lowest at 1.3910.
A bullish intraday projection is expected targeting 1.4000 then 1.4100. Keep in mind that the negativity on Stochastic could maintain the negative pressure on the pair.
The pound also appreciated against the dollar to trade at 1.5838, compared with the opening levels 1.5804, where it managed to reach the highest at 1.5887 and the lowest at 1.5722.
Expectations of a bullish direction over an intraday basis, as long as a breach and stability are achieved above 1.5880 where if the pair fails to resume this factor it will weaken chances of the pair resuming the suggested bullish direction.
Moving to the yen, the dollar extended its drop where the pair sank to trade at 81.78, compared with the opening levels of 81.92 where it managed to reach the highest at 81.93 and the lowest at 81.77.
A bearish intraday direction is still at play, targeting initially levels at 80.15, but Noting that the importance of the daily interval must be below the 82.95 to maintain chances of resuming these expectations.