Amid the absence of important economic fundamentals from major economies along with the mounting speculations the Fed Chairman, Ben Bernanke, would announce a third round of stimulus in his speech at the an annual central bank conference in Jackson Hole tomorrow, trading remained within narrow range where investor's eyes are on Bernanke speech.
The U.S. dollar remained weak against majors on Thursday trading as increasing expectations of seeing a third round of stimulus put downside pressure on the on the dollar on expected oversupply in markets.
The dollar index, which tracks the dollar movements versus a basket of major currencies, fell to low of 73.82 compared with the day's opening level of 74.03.
Later in the day, a U.S. report is predicted to show initial jobless claims will retreat to 405,000 in the week ended August 19 from 408,000 a week before.
On the other hand, the yen showed decline as hopes that the launch of QE3 would reinvigorate the U.S. growth sapped demand on refuges.
Concerning the USD/JPY pair, it advaned on the daily charts to trade around 77.15 after recording a high of 77.27 and a low of 76.82.
The trading range for today is among key support at 75.80 and key resistance now at 78.45.
Moreover, the euro pared some of its earlier drop against the dollar despite the release of downbeat German consumer confidence report which estimated forecasted decline next month.
Concerning the EUR/CHF pair, it rose slightly on the daily basis to trade around 1.1476, where it recorded a high of 1.1495 a low of 1.1431.
Moving to the British pound, it dropped against majors after a report showing that U.K. consumer confidence slipped by two points to 49 in July from 51 in June, adding to concerns that recovery is losing momentum.
Meanwhile, the sterling is trading around 1.6368 against the dollar, where the day's high was recorded at 1.6396 while the low was seen at 1.6343.
The trading range for today is among key support at 1.6225 and key resistance at 1.6715.
All in all, eyes remain in the awaited speech from Bernanke as an introduction to a third round of non-standard measures may increase hopes that U.S. growth will show progress, thereby accelerating the sluggish global growth pace.