By CountingPips.com
The U.S. dollar has been on the defensive in forex trading against the other major currencies today as risk appetite has flowed in the financial markets and pushed the euro to its highest level in two weeks. The positive investor sentiment boosted the U.S. stock markets, gold and crude oil higher while the dollar and the Japanese yen have been on the defensive most of the day.
The dollar has declined versus the euro, Swiss franc, British pound, Canadian dollar, Australian dollar, New Zealand dollar and the Japanese Yen while the yen has declined against all of the above besides the dollar, according to currency data by Oanda at the end of the U.S. trading session.
The euro (EUR/USD) increased to its highest level since June 1st and ascended over the 1.2300 exchange rate to touch a high at 1.2349. The British pound traded at its best level against the dollar in a month at 1.4837 while the Swiss franc also reached its highest level versus the dollar since May 18th in today’s trading action.
The U.S. stock markets, meanwhile, advanced sharply higher today with the Dow Jones ending the day up by approximately 214 points, the Nasdaq increasing about 62 points and the S&P 500 up by over 26 points. Oil rose by $1.38 to $76.50 per barrel while gold increased by $10.20 to trade at the $1,233.50 per ounce level.
EUR/USD 1-Hour Chart – The Euro followed through higher against the US dollar in the forex markets today and rallied to touch near the 1.2350 exchange rate. The EUR/USD has now gained ground for two consecutive days and currently trades right around the major 1.2330 level (2008 low point/support level).