The U.S. dollar and the Japanese yen strengthened against the other major currencies in the Asian session on Tuesday, as investor sentiment was hurt on political uncertainty in Greece and the sell-off in commodities.
Investors are trading cautiously amid a lack of triggers as the end of the year 2014 draws close. Many traders have closed out positions ahead of the New Year holiday resulting in subdued trading.
Greek politicians once again failed to elect a new president, triggering a snap election for January 25, which could yield power to the anti-austerity leftists, risking a nasty fallout for Greece's fragile economic recovery.
On Monday, Greek Prime Minister Antonis Samaras failed to get enough support for his presidential nominee in the vote.
Among commodities, crude oil prices fell, as investors brushed aside speculations that supply disruption from Libya could offset the global supply glut after reports of a fire at oil-storage terminals.
Crude oil for February delivery is currently down $0.06 at $53.54 a barrel.
On Monday, the U.S. dollar rose 0.28 percent against the euro, 0.28 percent against the pound and 0.02 percent against the Swiss franc. Meanwhile, the yen fell 0.18 percent against the euro, 0.18 percent against the pound and 0.13 percent against the Swiss franc.
In Asian trading today, the U.S. dollar rose to more than 2-year highs of 1.2131 against the euro and 0.9913 against the Swiss franc, from yesterday's closing quotes of 1.2150 and 0.9897, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.20 against the euro and 0.995 against the Swiss franc.
The greenback, which ended yesterday's deals at 1.1634 against the Canadian dollar and 1.5509 against the pound, strengthened to a 1-week high of 1.1647 and a 6-day high of 1.5504, respectively. The greenback is likely to find resistance around 1.17 against the loonie and 1.54 against the pound.
Against the Australia and New Zealand dollars, the greenback edged up to 0.8120 and 0.7770 from yesterday's closing quotes of 0.8130 and 0.7785, respectively. On the upside, 0.80 against the aussie and 0.76 against the kiwi are seen as the next resistance levels for the greenback.
The yen also rose to 8-day highs of 146.06 against the euro and 121.41 against the Swiss franc in Asian trading, up from yesterday's closing quotes of 146.57 and 121.89, respectively. If the yen extends its uptrend, it is likely to find resistance around 144.98 against the euro and 120.53 against the Swiss franc.
The yen, which ended yesterday's deals at 103.63 against the Canadian dollar and 187.18 against the pound, strengthened to a 1-week high of 103.34 and a 6-day high of 186.77, respectively. Continuation of the upward move may lead the yen to a resistance around 101.56 against the loonie and 184.30 against the pound.
Against the U.S., Australia and New Zealand dollars, the yen edged up to 120.36, 97.81 and 93.58 from yesterday's closing quotes of 120.66, 98.03 and 93.92, respectively. The yen may test resistance near 118.67 against the greenback, 96.08 against the aussie and 92.47 against the kiwi.
Meanwhile, the euro fell against the other major currencies in the Asian trading.
The euro fell to more than a 2-year low of 1.2130 against the U.S. dollar and an 8-day low of 146.06 against the yen, from yesterday's closing quotes of 1.2150 and 146.57, respectively. If the euro extends its downtrend, it is likely to find support around 1.20 against the greenback and 144.15 against the yen.
Against the Australian dollar, the euro slipped to nearly a 3-week low of 1.4919 from yesterday's closing quote of 1.4937. The euro may test support near the 1.47 area.
Pulling away from early highs of 0.7839 against the pound and 1.2030 against the Swiss franc, the euro edged down to 0.7818 and 1.2027 respectively. The euro is likely to find support around 0.77 against the pound and 1.19 against the Swiss franc.
Against the New Zealand and Canadian dollars, the euro slipped to a 3-month low of 1.5589 and a 4-day low of 1.4127 from early highs of 1.5629 and 1.4157, respectively. If the euro continues to decline, it may find support around 1.54 against the kiwi and 1.40 against the loonie.
Looking ahead, U.K. nationwide house prices index for December is due to be released at 2:00 am ET. Eurozone M3 money supply data for November is also due to be released.
In the New York session, U.S. S&P Case-Shiller home price for October and U.S. consumer confidence index for December are scheduled for release.
The material has been provided by InstaForex Company – www.instaforex.com