Currency markets are tranquil today where movements are in narrow range ahead of the release of jobless claims and trade balance in the US. Markets, yet there was movement during the Asian session where the yen strengthened against majors after a Chinese report showed that inflation rose to the highest in 16 months, which may prompt the Chinese central bank to unwind stimulus measures faster than expected. However, currently major pairs are consolidating except the pound that advanced against majors on speculations inflation in the U.K. will reach 2.5% within a year.
As for the sterling-dollar pair, it is showing incline on the daily and 4-hour charts, paring its decline in the previous three sessions. Today's incline was spurred by speculations that inflation will reach 2.5% in Britain in a year's time. However, in general, the pound is still in a downside trend that started since December due to the ongoing pressure coming from the volatile data, high debt, and possible political changes. Meanwhile, the pair is traded at 1.5035, after breaching strong psychological level at 1.50 level, recording a high of 1.5064 and a low of 1.4944, while it is moving between support at 1.4900 and resistance at 1.5100.
With regard to the euro-dollar pair, it is moving sideways on the daily charts close to the past two weeks levels. Today, there are no fundamentals from the euro zone except the release of March's monthly bulletin which does not include new details and thereby rarely affect markets. Now, the pair is traded at 1.3649 after reaching a high of 1.3668, where the coming support is seen at 1.3600 and next resistance is at 1.3700.
Relative to the dollar-yen pair, it is inclining on the daily charts for the second day after breaching strong resistance at 90.34 which represents 38.2% Fibonacci to the to the upside trend that started in December. Currently, the pair is traded at 90.65, hitting a high of 90.67, and a low of 90.18, whereas support is seen at 90.00 while resistance is at 91.20.