The Euro towards the overlap of the European with the US session has extended its losses reaching very close to a 3-week low. This low was a result of a downgrading of Greece by Standard and Poo’s that cut the Greek rating to B from BB-. This had triggered risk aversion and concerns in the Eurozone and uncertainty over the sovereign debt. Following that low around mid-session the Euro has been recovering and has made a near 100 pips recovery and is of great interest to see if this recovery will continue.
The Sterling has had a similar route against the Dollar like the Euro did today. A significant drop in price was developed towards the European Session closing time that resulted into a session low of 1.6269 during the US Session. Following that low the Sterling has recover substantially making a near 130 pip to record a session high at 1.6398. The US Dollar has been relatively weaker today during the US Session following the rise in commodity prices. RICS House prices are to be announced in the UK shortly after the start of the Asian Session that could show an inside to the UK housing market.
Against the Swiss Franc the American Greenback has been showing an upward trend that has started since the pair had reached the all-time low. During the overlap of the EU with the US session the pair continued to rise until it reached the session high of 0.8787 and following that a downwards correction move has been following. Given the fact that the session low was lower than the one during the EU session this could be a first sign of a trend reversal at a day where the Dollar is weakening. Vital consumer price index figures for Switzerland that will show an inside on inflation are to be announced tomorrow.
The Canadian Dollar has been trading at a pattern resembling an hourly range against the American Greenback. During the day housing data were announced in Canada at rates lower than what it was expected that gave a temporary boost to the USD. The pair has been founding resistances around 0.9700 while the support levels appear to becoming higher. This could point to a potential rise for the USD.
Gold, the precious metal has continued its recovery following the USD1462.23 low from last week. Commodities in general have been rising today following a weaker Dollar and investors seeking to hold long positions after the big drop from last week, waiting for the metal to reach again the all-time high levels. Goal is currently traded at USD1512.13 an ounce, and has reached higher than the 38.2% Fibonacci retracement level.