The U.S. dollar fell against majors as the improvement in the sentiment, following the release of upbeat data from major economies and before the release of ISM manufacturing, damped demand on the green currency as a refuge.
The main focus in the market today remain on manufacturing data from major economies, where yesterday Chinese, Indian and Australian manufacturing showed progress in December offsetting the contraction for the fifth month in European manufacturing.
Today, Swiss and U.K. manufacturing figures came better-than-expected to add more positivity to the sentiment, while later in the day, U.S. ISM manufacturing is expected to record 53.4, the fastest pace in six months, from 52.7 in November.
The dollar fell to the lowest level in two weeks versus the euro, where the dollar index, which tracks the dollar movements versus a basket of major currencies, dropped for the fourth session to a low of 79.60 compared with the day's starting level of 80.27.
Also, the green currency fell against the franc to trade around 0.9339 after recording a high of 0.9399 and a low of 0.9311, where the pair was pushed to the downside after Swiss PMI manufacturing beat estimates as it recorded an expansion of 50.7 compared with both median estimates and the prior readings of 45.4 and 44.8 respectively.
The trading range for the USDCHF pair today is among the major support at 0.9235 and the major resistance at 0.9660.
Concerning the EUR/JPY pair, it rebounded from 11-year low the daily charts to trade around 99.97 after recording a high of 100.11 and a low of 99.40.
The euro benefited from the improvement in German unemployment as the rate retreated to 6.8% in December from 6.9% in November, proving hopes Germany may lead recovery in the euro zone in 2012.
The trading range for the day is expected among the key support at 97.40 and the key resistance at 101.80.
Moving to the GBP/USD pair, the pair showed an advance after the release of better-than-estimated manufacturing data for the U.K. where the index came in at 49.6 in December compared with the revised 47.7, which was 47.6 initially, and median estimates of 47.3.
The trading range for today is among key support at 1.5270 and key resistance at 1.5780.