Dollar fell against majors, as Ireland’s government approved an international bailout that might total nearly €100 billion. The dollar extended its drop during Monday’s trading, but forecasts signal that a slight upside correction may influence the single currency trading as investors interoperate the effects of Ireland’s bailout on money supply.
Greece’s bailout plan that was presented earlier this year, caused a massive decline for the shared European currency, where it traded at four-year low against the dollar, before surging once again starting August as news emerged that the Fed will introduce a second round of stimulus measures to boost recovery in the US.
The euro rose by 17.0 percent since the Fed hinted for the first time in August of a possible injection of money, which led the dollar to depreciate to historic lows against the euro and the yen.
The dollar is trading near 15-year low against the yen, with expectations that the world’s reserve currency might actually become the world’s weakest currency.
The US dollar index, which tracks the performance of the dollar against six major currencies, traded near the opening levels at 78.09, while setting a high of 78.24 and a low of 77.97.
The EUR/USD pair opened trading at 1.3716 while setting a high of 1.3785 and a low of 1.3709 while currently trading at 1.3739.
A bullish intraday direction remains intact, targeting 1.3750 and 1.3850 that requires trading to remain above 1.3580.
The pound rose against the dollar to trade at 1.6047, compared with the opening levels of 1.5978 where it managed to reach the highest at 1.6083 and the lowest at 1.5967.
A bullish intraday direction remains intact as long as the pair DO NOT breaches 1.5960, while the targets are set at 1.6300. A breach of the mentioned levels would weaken the chances to extend the rise.
The yen rose against the dollar, as the dollar fell to trade at 83.42 against the yen on the daily scale, where it managed to touch a high of 83.56 and a low of 83.32.
A bullish intraday direction remains intact, targeting 84.00 and 85.00 but requires stability above 82.65.