Currency trading remained slightly calm ahead of G-20 meeting that will take place this weekend. The dollar traded unchanged but forcing downside pressures by investors as they await the release of the Fed’s rate decision that might witness the introduction of new QE measures.
Federal Reserve Bank of St. Louis President, James Bullard stated yesterday that the size of any debt purchasing program should not be below $100.0 billion, which would naturally cause downside pressures on the dollar to extend its decline against majors.
Timothy Geithner, The US Treasury Secretary stated ahead of G-20 meeting that countries should not seek devaluing their currency as it would tamper economic growth, meanwhile assuring that the US will pursue a stronger dollar.
The US dollar index, which tracks the performance of the dollar against majors traded unchanged at 77.40, where it managed to touch a high of 77.74 and a low of 77.20.
The euro rose against the dollar on remarks from ECB president Juan Claude Trichet that the dollar’s appreciation would damage the economic recovery in the US, where the pair gained on the daily scale to trade at 1.3943 compared with the opening levels of 1.3918 where it managed to reach the highest at 1.3971 and the lowest at 1.3856.
A bearish intraday direction is projected, targeting 1.3725 as the pair stabilizes below 1.4000 levels, if the pair sustains trading above 1.3890, then the upside trend remains intact with targets at 1.4100.
The pound traded unchanged at 1.5701, where it reached the highest levels at 1.5749 and the lowest at 1.5654.
The pair is expected to drop further targeting 1.5500 keeping in mind the importance of breaching the support at 1.5665 and achieving a four-hour closing below these levels.
The dollar fell against the yen to trade at 81.19, compared with the opening levels of 81.32 where it reached the highest at 81.36 and the lowest at 80.97.
The pair’s trading range for today remains among the support at 81.00 and the resistance at 81.40.