The meeting held by EU Finance Ministers in Brussels spread some optimism among investors where they believe that the measures being discussed to help counter the debt crisis, would actually succeed in ending the market's misery and put investor's concern to rest.
The European shared currency slashed all the losses acquired during yesterday's trading session, where it ascended against the dollar. The pound surged after inflation data showed a severe increase in prices during December, reaching 3.7 percent, compared with the previous reported rise at 3.3 percent.
The pound's appreciation sent the US dollar index, a six-currency gauge of the dollar's performance, to trade at the lowest level in two-months.
The dollar index opened today's trading at 79.18, while currently trading at 78.86, where it managed to set the highest at 79.23 and the lowest at 78.68.
The euro appreciated as confidence improved in Germany and the Euro-Zone as whole, where the EUR/USD pair rose to trade at 1.3395, in attempt to retest the resistance at 1.3430. The pair opened at 1.3293 where it set the highest at 1.3428 and the lowest at 1.3251.
The pound ascended in trading, breaching the resistance at 1.5967 where it's currently trading at 1.6008, while setting a high of 1.6058 and a low of 1.5875. on the four-hour chart, the pair is expected to correct the rise, and retest the above mentioned resistance, but the general trend for today is bullish, with targets set at 1.6297.
As for the dollar's trading against the Japanese yen, the single currency fell on the daily scale to 82.47, compared with the opening levels of 82.66 where it managed to set the highest at 82.75 and the lowest at 82.34.
The pair's attempt to breach 82.50 was successful, paving the path for the pair to target 82.00. a daily closing below 82.00 would allow the pair to target 81.50 then 81.00.