US Dollar Look To Decline For Optimistic Of G7 Intervene


The U.S. dollar declined against major currencies today in volatile trading, where investors were somewhat feeling optimistic that the G7 will intervene in markets, which encouraged investors to invest in higher yielding assets, while investors’ confidence was further supported as stock markets rose in Europe and the United States.


The U.S. dollar dropped yesterday against the Yen to a record low, as investors’ fears over the nuclear crisis in Japan forced investors to dump risky assets. The Yen also rose against other major currencies yesterday, however, today’s trading was highlighted by heavy fluctuations, since investors are still concerned with the overall situation in Japan, while Libya remains a focal point for markets amid reports that the U.S. suggested airstrikes against Gaddafi’s troops in addition to forcing a no-fly zone.

The U.S. dollar index, declined on daily basis to trade at 76.00, compared with the opening level at 76.44, while recording a high of 76.66 and a low of 75.85. Gold prices rose to trade at $1402.16 an ounce, compared with the opening at $1387.40, while oil prices also rose to trade at $100.93 a barrel, compared with $97.38 a barrel.

The Euro rose against the U.S. dollar today, where the EUR-USD pair is now trading at $1.4027, compared with the opening level at $1.3882, while recording a high of $1.4052 and a low of $1.3875. The pair is now trading the $1.4100 resistance, given it can continue to trade above the support at $1.3905; however, breaching this support would send the pair to the support at $1.3800.

The British Pound also rose against the U.S. dollar, where the GBP-USD pair is now trading at $1.6142, compared with the opening level at $1.5987, while recording a high of $1.6172 and a low of $1.5981. The pair is trading above the support level at $1.6105 and the target is set at the resistance $1.6250 level, however, breaching the $1.6105 would send the pair back to the $1.6040 support at least.

The U.S. dollar was little changed against the Japanese Yen today, where the USD-JPY pair is now trading at ¥79.21, compared with the opening level at ¥79.14, while recording a high of ¥79.74 and a low of ¥78.27. the pair continues to trade below the resistance at ¥79.80 and so long it continues to trade below this level, the target will be the ¥78.00 support, however, breaching the resistance at ¥79.80 to the upside would send the pair to the ¥80.60 resistance level.(www.fxstreet.com)

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