Forex trends: dollar surges higher versus majors

image On Wednesday the US dollar strengthened against its major counterparts as a fall in European stocks boosted demand for the relative safety of the U.S. currency.

European shares fell in early trade today, slipping back from their highest close in nearly 11 months, tracking a decline in Asia and as metals prices weighed on mining stocks.

Against the European currency, the US dollar edged higher during early deals on Wednesday. At 3:30 am ET, the dollar reached a high of 1.4469 against the euro, compared to 1.4480 hit late New York Tuesday. The next upside target level for the dollar is seen around 1.437.

The US currency that closed Tuesday’s North American session at 1.6489 against the British pound slipped to 1.6566 at 2:05 am ET Wednesday. Thereafter, the dollar reversed its direction and is currently trading at 1.6462 versus the pound with 1.616 seen as the next target level.

Against the Swiss franc, the greenback showed strength during Wednesday’s early deals. At 3:35 am ET, the dollar-franc pair climbed to 1.0492, compared to Tuesday’s closing value of 1.0476. If the pair gains further, 1.061 is seen as the next target level.

The dollar that closed Tuesday’s New York deals at 92.33 against the Japanese yen hit a high of 92.61 at 3:25 am ET Wednesday. On the upside, 93.5 is seen as the next target level for the dollar-yen pair.


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