The single currency as part of the Asian Session dropped in value today against the US Dollar. The European Central Bank Governor Jean-Claude Trichet stated that he shares the opinions that a strong Dollar will serve the interests of the United States, a statement that was regarded by some investors as expressing aggravation for the continuous drop the Dollar was expressing and as an attempt to rise it up. He also stated to two newspapers in Finland that he does not anticipate any second round significant inflation fear urging long Euro holders to drop their positions. Since the start of the session the EURUSD pair dropped as much as 83 pips and is currently traded at 1.4535.
The USDJPY continued to drop in value by following an hourly downward trend that started after the 82.42 peak that occurred as part of yesterday’s Asian session. The Dollar reached as high as 81.97 a value that stop exactly on the 55 Moving Average indicator .Following that high the Yen continued to gain against the Dollar and is currently traded at 81.66.
The Sterling followed a similar patter as the Euro against the US Dollar. Trading remained light as part of the Easter Holiday and is of high interest to see how the trading will commence in a few hours when the European Session will start as all the major markets will be become open. The Sterling on an hourly periodicity length has developed a downward trend against the US Dollar which has started since the 1.6599 peak high of last Thursday with major technical indicators pointing the trend will continue to go down after experiencing an upwards correction.
The Aussie continued to drop in value against the American greenback. The AUSUSD has been following a downward trend that appeared to become even steeper during today’s Asian session. The sudden sell-off of Silver and Gold, that reached record high levels, by long holders that wanted to lock their profits affected Australia as by being a major Silver and other commodity exporter it is natural for its currency to be affected by such a move. At the same time the drop in Gold price gave rise in the USD price as history has shown the tend to be negatively correlated.
The hot streak of Gold ended today as following the 1518 high of the European Session it has been dropping in value in a volatile rate. Some investors decided to lock their profits while others viewed drops in value as corrections and hence opportunities for a wave entry long position. As part of the Asian Session Gold dropped by 0.7% loosing the USD1500 an ounce level with most losses being recorded between 01:00GMT and 02:00GMT