The US dollar gained against the yen, but depreciated against other majors as lack of fundamentals from major economies prompt investors’ to steer markets as they desire.
Stocks declined, due to companies’ performance throughout the third quarter of this year, where most of the released data today showed disappointing results. Currency market remained relatively calm, with the dollar gaining momentum against the Japanese yen, and advanced to the highest level in nearly four-weeks.
The euro continues on depreciating against the dollar, touching a two-week low, on rising speculations that the ECB will fail to extend its aid to EU economies after withdrawing stimulus measures.
The dollar index traded at the opening levels for today at 77.77, reaching a high of 77.85 and a low of 77.49.
The euro-dollar pair traded at 1.3787, while setting a high of 1.3769 and a low of 1.3733.
Standard Chartered advised investors to sell the euro against the dollar on prospects that the currency would fall to 1.3450 levels.
A bearish intraday direction for the pair were activated by the breach of 1.3800, targets at 1.3725 and 1.3690, note that to achieve those targets, trading must stabilize below 1.3800.
The pound rose as well, despite Barclays forecast of a drop due to the inflation report that was released by the BOE where nothing new was submitted to investors’ rather than confirming that inflation levels would remain above the upper limit set by the bank at 3.0 throughout the upcoming year.
So far, the cable is trading at 1.6092 compared with the opening levels of 1.5980 while setting a low of 1.5959 and a high of 1.6098.
A bearish intraday direction is projected with targets at 1.5960 and 1.5750, requiring stability below 1.6065.
As for the Japanese yen, the dollar surged against the yen. The dollar-yen pair’s trading at 82.33, compared with the opening levels of 81.66, setting a high of 82.66 and a low of 81.53.
The breach of 81.00 levels paved that path for further bullishness, targeting 82.65 and 83.00, but to achieve those targets, a four-hour closing above 81.40 must be achieved.