The yen and dollar slide as the optimistic bank earnings by Societe Generale enhanced demand on higher-yielding assets ahead of the FED statement. The dollar retreated despite the downbeat data released in the U.S. showing pessimistic figures in non-manufacturing sector and labor market. The dollar index, which tracks the dollar movements against a basket of major currencies, slumped to 75.87 compared with the day's opening at 76.27.
As regards to the euro-dollar pair, it is inclining on the daily and 4-hour charts, The euro zone released its PMI services for October showing further improvement and providing hopes that the leading sector is recovering. Meanwhile, the euro is traded at 1.4835 recording a high of 1.4841 and low of 1.4700, where the pair is supported by 1.4816 then faces the coming resistance of 1.4880.
As for the sterling-dollar pair, it is showing an incline on the daily and 4-hour charts. PMI services for October released today reached its highest level since August 2007 ahead of the BoE meeting tomorrow where they will set the interest rate and announce the amount of the asset purchase facility program. So far, the pound is trading at 1.6572 setting a high of 1.6576 and a low of 1.6398; while the coming support for the pair is seen at 1.6540 and the resistance is spotted at 1.6590.
With regard to the dollar-yen pair, it is showing an upside tendency over daily basis; however, on the 4-hour charts the pair is showing decline. The pair after breaching the strong resistance at 90.28, which represents 23.6% Fibonacci retracement for the downside trend that started on August 10, is heading to the coming resistance at 91.71. Now, the pair is trading around 90.75 after hitting a high of 91.04 and a low of 90.03; while the pair is currently facing the coming support level at 90.65, while the resistance is spotted at 90.78.