FRX: Dollar at five week high, Ireland debt worries affect markets
Ireland government's debt worries affected trading once again where the euro ascended against majors after the Irish government bond surged which sent yields on the bonds down to the lowest level since the introduction of EU bailout plan in May.
The dollar ascended against majors, and traded at five month high against the yen as it breached 83.0 levels due to the rise in bond yields. US growth rates that is forecasted to ascend spurred investors demand for the single currency forcing an upside movement as indicated on the US dollar index.
The index tracks the performance of the greenback against majors where it’s currently trading at 78.46, compared with the opening levels of 78.19 while touching a high of 78.56 and a low of 78.16.
The euro declined against the dollar to trade near $1.3645 levels, where the pair touched a high of $1.3749 and a low of $1.3601.
Breaching levels at $1.3685 triggered a downside trend, as the stochastic is nearing an oversold area. The pair is targeting $1.3615 where a clear breach and a daily closing below these levels would pave the path for the pair to target $1.3500.
The pound dropped against the dollar as well after reports from Home sellers showed lower prices. The pound rose against the euro after Greece’s budget deficit was revised up to 15.0 percent by Eurostat, which boosted demand for the cable against the euro.
The pound traded lower against the dollar at $1.6090, compared with the opening levels of $1.6144 where it touched a high of $1.6152 and a low of $1.6039.
A downside intraday movement is forecasted for the pair, targeting $1.5960 that requires trading to remain below $1.6185.
Finally, talking about the dollar’s performance against the yen, the world’s reserve currency appreciated against the Japanese yen to trade at 83.02, while attempting to breach a pivot resistance at 83.05.
The pair opened trading at 82.46, while setting a high of 83.24 and a low of 82.37. Additional bullishness is forecasted, targeting 83.35 and 84.00, but requires a four-hour closing above 83.00 and stabilizing above it.
