The EURO was traded steadily against the US Dollar during the Tuesday European Session while during the US session it was able to record gains. Despite being able to make gains investors are still concerned over the sovereign debt problem with a lot of players being skeptic about holding long positions. It is highly likely that once the debt problems are cleared out the currency will become firmer. Nevertheless it still remains very vulnerable with any bearish comments to have the power to stop its recovery and immediately drag it back to 7-week low or even lower. Today the EURUSD pair opened the US session at 1.4222 and was able to reach as high as 1.4286. It is worth stating that during the last three days the Euro has been rising and has already broken the 55 day moving average.
The US Dollar today was quite weak against the Japanese Yen. The USD rose yesterday during the European Session to an 81.86 high from which it has been falling since then. During the Asian session today it was able to trade as high as 81.54 and shortly after plumed to an 80.97 low. During the session weak data was announced for the domestic services sector were announced in Japan, a country that relies majorly on its exports that developed some uncertainty in the trading behavior following the hour it was announced.
The Sterling just like yesterday, was traded flat against the US Dollar. Apart from 06:00 GMT where a 15pip upward move was generated the GBP/USD pair was traded sluggish around 1.6245-1.6250 with the trading range being only 15 pips. Eventually the Sterling that had strong CPI data yesterday was able to end the session with gains. The highly important minutes from the interest rate policy meeting in the UK are to be announced later in the day that most likely are to generate volatility given the UK public is constantly awaiting an interest rate hike.
The Aussie that recorded gains during the US Session was able to continue doing so as part of the Asian Session. Despite being traded relatively silently a bigger upwards move was made towards the end of the Australian market closing time. The Australian Dollar mostly stumbled from making more significant gains against the US Dollar following the announcement of weak labor cost data that were less than what the market expected. The Aussie is currently traded at 1.0648 after having found resistance at around 1.0665.
Gold, the safe haven metal that hit an USD1471.63 low during the middle of the US Session following a massive drop in the start of the US Session was able to cover those loses and fully retrace that downwards movement. The precious metal was able to make this recovery and is possibly on a run as concerns in the Eurozone over the sovereign debt problem are likely to keep boosting it. The session high was at USD1892.73 an ounce while it is currently traded at 1492.73 an ounce as it is attempting to reach a newer high.