After European Central Bank President Jean-Claude Trichet said that a “double-dip recession” is unlikely, the euro almost reached its highest level versus the dollar in two weeks. Now that there are less fears about the sliding economic recovery in Euro zone, the currency was finally able to recover from its losses. By surpassing the 1.2800 level, the euro will have a bullish momentum, as the EUR/USD recorded a low of 1.2776 and a high of 1.2848. As for the British pound, the currency declined against the euro and the dollar after reports confirmed that the UK house prices declined in six months, from -0.30% forecast to -0.90%. These data suggest that economic recovery may take a while for Great Britain. Unfortunately, the momentum for the GBP/USD is still bearish, after the currency pair traded in negative range. The GBP/USD traded between 1.5350 and 1.5451.

With hints of an improving housing market, following news of better than expected US home resales, the dollar traded mixed against forex majors. Instead of safer assets, many forex trading investors went for higher-yielding investments. The Japanese yen advanced against major currencies, with the USD/JPY trading at a high of 84.55 and a low of 83.99. Meanwhile, the Canadian dollar weakened against the dollar, with the USD/CAD pair closing at a low of 1.0471 and a high of 1.0555.