Dollar strengthened for the third day against majors due to the rise in treasury yields following Obama's approval to resume tax cuts and his call for lower payroll taxes.

While Obama's decision is expected to give a boost on the short run it will raise debt on the long run, yet it gave support to the dollar meanwhile.

The dollar index, which tracks the dollar movements against a basket of six currencies, soared to a high of 80.39 compared with the day's opening price at 79.98.

Accordingly, dollar-denominated commodities pared their advance where gold and oil fell more their high records.

On the other hand, upbeat news from Europe managed to outweigh concerns that China will raise interest rate and tighten monetary policy this weekend to contain the skyrocketing inflation and the escalation between the two Koreas.

Industrial production data in Germany showed improvement in October to 2.9% from the revised -1.0%, Ireland voted yesterday on passing the 6 billion-euro budget with pressures ongoing to pass votes on the 85 billion-euro package granted from the EU and IMF last month and France's central bank raised its projections for fourth-quarter growth.

Concerning the euro-dollar pair, it fell on the daily basis yet it may find solid support at 1.3120 levels.

Meanwhile, the pair is trading at 1.3212 after recording a high of 1.3280 and a low of 1.3178, while the trading range for today is among the key support at 1.3080 and the key resistance at 1.3425.

Moving to the royal pair, it is showing incline where the pair is currently trading at 1.5772 after recording a high of 1.5835 and a low of 1.5666, while the trading range for today is among the key support at 1.5510 and the key resistance at 1.5900.

With regard to the dollar-yen pair, it spiked high after the breach of strong resistance at 83.70 level which took the pair to a high of 84.29 while the lowest point was recorded at 83.44.

The trading range for today is among the key support at 82.80 and the key resistance at 85.00.