The U.S. dollar collapsed to 3-mtonh low versus the Japanese yen as the improvement in the sentiment after upbeat manufacturing data sapped demand on the greenback as a refuge.
The green currency fell against a basket of major currencies, as depicted by the dollar index, which tracks the dollar movements versus a basket of major currencies, after manufacturing data in China, euro area and U.K. beat forecasts, providing hopes global economies will rebound in the first quarter.
Later in the day, the U.S. will release important data, including ADP employment and ISM manufacturing. Also, eyes will track the selling of 5- and 10-year notes by the German government.
As for the USD/JPY, it fell for the fifth consecutive session to trade around 76.08 after reaching a high of 76.30 and a low of 76.01, sparking speculations the BoJ will intervene to halt the yen's appreciation.
The trading range for today is among key support at 75.20 and key resistance now at 77.30.
Moreover, eyes are still on the Greek negotiations to see what will be the result of the discussions after the EU summit on Monday had a saw a signing of stricter budget rule agreement and the launch of the permanent European fund one year earlier.
A report by Bloomberg on Wednesday said Greece and its creditors may reach an agreement with a loss of 70% for a lower borrowing cost of 3.6% instead of 4.25% on 30-year bills, where, in return, a rebound in Greek growth would make the pay to bondholders higher as a compensation for accepting a loss in net present value terms by an estimated 0.5 to 3 percentage points.
Concerning the EUR/USD pair, it rose to trade around 1.3125, after recording a high of 1.3151 and a low of 1.3024.
The trading range for today is among key support at 1.2970 and key resistance at 1.3375.
Moving to the GBP/USD pair, it is currently traded near the day's opening around 1.5757 after touching a high of 1.5786 and a low of 1.5704. Data from the U.K. showed that manufacturing recorded an expansion of 52.1 in January compared with the revised up reading of 49.7.
The trading range for today is among key support at 1.5515 and key resistance at 1.5935.