Greenback Keeps the Bullish Attitude, Weekly-Lows for Euro - 5.4.2012

US Dollar US dollar has been strengthening across the board on the 4th of April, against its major peers, commodities have been also falling due to the strong dollar. Greenback was further supported after yesterday’s meeting minutes of the Federal Reserve that signaled it may refrain from QE3 and by today’s report that the ADP Non-Farm Payrolls increased by 209,000 in March. While the forecast for ADP data was at the 205,000. The report about the U.S service industries was worse than anticipated and showed that expanded slower than expected, the forecast for the ISM Non-Manufacturing Index was at the 56.9 for March compared to the 56.0 that was announced. The US dollar on Wednesday the 4th of April has been surging against the Swiss franc, it broke the top of the range at the 0.9070 and then moved to higher levels finding resistance at the 0.9182 level. The greenback against the Yen found resistance at the 82.99 level and then dropped to the 82.08 support level, it was lastly seen at the 82.45 level. Versus the dollar the precious metal extended its losses today, sliding to new lows since the mid of January. The Gold fell to the 1617.42 support level, creating more than 4 per cent losses in less than 24-hours trading. The aussie also was unable to hold its ground against the greenback and dropped to the 1.0243 support level. US stock indices opened today lower, the Dow Jones Industrial Average is down by 103 points, or by 0.78 per cent, at the 13,096.55 level. The S&P’s 500 Index is lower by 0.78 per cent, trading at the 1,402.34 level. Euro The common currency against the greenback has been discovering new weekly lows today on bearish sentiment. News from the Spanish bond auction has been disappointing, demand fell for the 5-year Spanish notes and the yields rose by 23 basis points to 4.49 per cent. At the same time the similar-maturity Italian debt and Greek bonds fell. Furthermore, European retail sales dropped to 0.1 per cent, Germany factory Orders were less than expected and the ECB held the Interest rate at the same level. The Euro experienced losses of more than 1.5 per cent, falling from the 1.3350 level that was trading yesterday to the weekly-low 1.3108 support level today. European stocks were on a slippery slope today, the France’s CAC40 Index is now trading at the 3,342.07 lower by 1.91 per cent and the Germany’s DAX Index is now trading at the 6,833.48 negative by 2.15 per cent. British Pound The British pound strengthened against the Euro as the U.K March Services were unexpectedly expanded, the services PMI figure was higher at 55.3 compared to the forecast at the 53.5. Against the greenback however the sterling dropped to the 1.5832 support level and was lastly seen at the 1.5863. The FTSE 100 Index is trading 1.40 per cent lower or dropped by 81.36 points at the 5,757.52 level.