Markets witness today risk seeking trades and especially in currencies market, which led investors to the high yielding Euro pulling it upwards to advance before the US Dollar and the Japanese Yen. Fears of the slowing Japanese economy have sent the Yen to weaken the most in seven weeks versus the Euro.
The Euro targeting came before the launch of Irish Treasury Bonds auction, the auction along with the global slowed economic activities in general formulated fear in the minds of investors.
The over its head with Debt Ireland tries its best through the auction to lower it high debt level yet fears still surround the Irish economy, similar to the Greek economy. The data released on the economic calendar did contribute in shaping today's trading characteristics, such data included the falling as expected Consumer Prices in the UK and the better than expected Core PPI in the US.
The Dollar index which measures the USD's performance versus six major currencies fell from today's opening level of 82.39 to currently trade at 82.16 recording its highest level at 82.52 and its lowest at 82.01. Gold prices climbed reaching $1225.90 per ounce from the opening price of $1224.50. Oil slightly climbed reaching $76.11.
The Euro/Dollar pair climbed up to this moment in spite of the fears surrounding the Euro Zone's economy to trade above the opening level of $1.2824 at $1.2894 recording an intraday high at $1.2915 and a low at $1.2802, the pair did not succeed in braking the $1.2830 support level and resistance remains at $1.2900, as the pair is currently near resistance, should it break it, it will turn to support and resistance will shift to the $1.2950 level.
The "Royal Pair" Sterling/Dollar fell as the UK economy release Consumer Prices that fell yet remained above the Bank of England's alarming level of 3.0% to trade below the opening level of $1.5660 at $1.5573 recording a high at $1.5694 and a low at $1.5560. By this the pair broke the $1.5635 support levels turning it to resistance felling to the next support level at $1.5580 and following $1.5515.
Finally the Dollar/Yen pair climbed during today's trading as the Japanese economy slowed down and fell in ranking to be the third largest world economy after the US and following it China, to trade below the opening level of ¥85.29 at ¥85.52 recording a high at ¥85.67 and a low at ¥85.09, the pair moved the whole day in narrow ranges as stochastic assured that the pair was oversold. The pair is believed to continue an upward trend as long as it stays above ¥85.05 support level, while resistance remains on ¥85.70.