During Thursday, metals prices continued their rise while jobless claims unexpectedly rose as well as other price pressures. Also, continues concerns over the European debt crisis and inflation weigh down on the dollar.
Thu, Apr 14 2011, 16:47 GMT
Pessimism dominated financial markets on Thursday, where jobless claims rose unexpectedly, while the producer price index from the United States showed price pressures rose in March, meanwhile, the Senates published a report accusing Goldman Sachs among other financial institutions of manipulating mortgage markets and cause the worst financial crisis since the Great Depression.
The U.S. labor department released the jobless claims for the week ending April 9, where jobless claims rose to 4121,000 worse than median estimates of 380,000, while PPI showed that price pressures continued to mount in March as energy prices rose heavily.
Moreover, concerns over the outlook of the European debt crisis weighed down on confidence among investors, where speculations mounted that some European countries might be forced to restructure their debt.
The Dollar index, which tracks the performance of the U.S. Dollar against a basket of currencies including the Euro, the British Pound, and the Japanese Yen, declined on daily basis to trade at 74.79, compared with the opening level at 74.87, while recording the highest at 75.15 and the lowest at 74.62.
Gold prices rose strongly today, where gold was trading at $1472.99 an ounce, compared with the opening level at $1456.14. Crude oil prices also rose as well today due to the dollar’s weakness, where crude oil was trading at $108.39, compared with the opening level at $107.26.
The Euro rose back today against the U.S. dollar, where the EUR-USD pair rose to trade at $1.4486, compared with the opening level at $1.4451, while recording a high of $1.4514 and a low of $1.4365. The pair is trading above the critical support level at $1.4445 and so long the pair remains above this level, the target is set at the $1.4625 resistance level, but breaching the support at $1.4445 would send the pair to the support at $1.4345.
The Pound also rose against the U.S. dollar, where the GBP-USD pair traded at $1.6360, compared with the opening level at $1.6277, while recording a high of $1.6384 and a low of $1.6254. The pair is trading above the support level at $1.6250 and so long the pair remains above this level, the target is set at the $1.6400 resistance level, but breaching the support at $1.6250 would send the pair to the support at $1.6175.
The U.S. dollar declined against the Japanese Yen, where the USD-JPY pair traded at ¥83.36, compared with the opening level at ¥83.73, while recording a high of ¥83.83, and a low at ¥82.95. The pair is now trading below the level at ¥83.50, and so long it continues to trade below this level, the target is set at the ¥82.70 support level, while breaching the resistance level at ¥83.50 would send the pair to the next resistance at ¥85.00.
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