Daily Market Review – United States Session – Basket of Majors hit yearly highs against USD

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The Euro continued gaining throughout today’s sessions, reaching a new 15 month high against the Dollar at 1.4465 in the latter part of the United States session. The Euro has been strongly buoyed by yesterday’s interest rate increase – the first since July 2008 – of 25 basis points from 1% to 1.25% and the likelihood of more interest rate hikes to take place in the upcoming months. In addition the thought of a US government shutdown, further allowed the Euro to maximize its gains against the greenback. The next resistance level for the EURUSD is seen around the 1.4577 levels – the 2010 January 10^th high.

The US session saw the Sterling experience an oscillatory movement which brought it back to the session’s starting levels around the 1.6350 which was still some 37 pips above today’s open of 1.6313. The GBPUSD pair has reached a 14 month high at 1.6426 in mid European session and has remained relatively close to this level as we approach the end of the US session. Resistance for the British pound is seen at 1.6400, which denotes last month’s high.

Like most other majors the Swiss Franc has also been appreciating throughout today’s session against the USD, pushing the USDCHF pair to a 2 week low of 0.9094. The currency pair is closing in on a support level at 0.9084, which denotes the March 25^th low and also a level which is in line with the 38.2% Fibonacci drop from the pair’s March 9^th to March 16^th drop.

The Canadian Dollar reached its highest level in 3 years today against its neighboring currency, the USD, in early US session. The USDCAD pair fell to a low of 0.9525 – its lowest level since November of 2007, a time at which the pair reached its lowest ever level at 0.9057. The Canadian Dollar did drop a little after negative economic data came out with respect to the county’s net change in employment, but shortly after gained momentum and rose against the greenback. The US session did not see the Canadian Dollar remain firm, however, as the USDCAD went on to rally from the 3 year low at the early stages of the session, by some 55+ pips to 0.9584.

Gold reached yet again another all time high at $1474.8 per ounce in late US session, representing the 4^th straight day that the precious metal has continually broken previous all time highs. The safe haven commodity was set for one of its biggest weekly gains in over 4 months as it gained support from recent Euro zone sovereign debt crisis from Portugal and inflation jitters as crude Oil and corn hit new highs this week.