High yielding assets and risky investments were targeted throughout today’s trading session on a global scale affected by the release of better than expected earnings by major companies in Europe and US that helped stocks to trade higher on Thursday.
Confidence in the euro zone rose to the highest levels in two-years, while easing conditions in the US pushed the Euro to gain against the dollar. The Fed beige book yesterday noted that conditions in the US are slowing unlike the European continent that has been enjoying rising demand and better than expected performance from various sectors.
The US Dollar index, a gauge of the dollar’s performance against six major currencies, retreated on the daily scale to trade at 81.67, compared with the opening levels of 81.98. The index reached the highest so far at 82.16 and the lowest at 81.53.
As for trading, the euro-dollar pair extended its advance after narrow trading for the past two days, where the pair is currently nearing 1.3090 levels. The pair opened today’s trading at 1.2993 while reaching the highest at 1.3092 and the lowest at 1.2976. Currently, the pair is trading at 1.3086 and rising. Trading above key support for the ascending channel at 1.2915 will maintain chances of the bullish trend continuing to test levels around 1.3115 then 1.3280.
Moving to the Royal currency, the pair extended its six-trading day rally, to trade at $1.5634, compared with the opening levels of $1.5590 where the pair reached the highest at $1.5661 and the lowest at $1.5581. Expectations show that the pair will extend its bullish direction over an intraday basis. Technical targets start at 1.5695 then 1.5780, trading must remain above 1.5360 in order to achieve those targets.
Finally talking about the dollar’s performance against the Yen, the USDJPY pair depreciated as its trading at 87.07, compared with the opening levels of 87.44, the pair managed to reach the highest levels today at 87.5 and the lowest at 86.71. A bearish intraday trend is projected with targets at 84.75, which requires a daily closing below 89.60 in order to achieve those targets.
