The dollar advanced against majors amid worries in markets as the negotiations between the Greek government and creditors reached an impasse as Greece rejected 4% interest rate on new loans, claiming that the maximum is 3.5% which was also supported by euro area finance ministers.
The U.S. dollar is gaining ground amid concerns of seeing a debt restructuring deal or an orderly default for Greece which has to repay as much as 14.5 billion euros of debt maturing in March.
Also, yesterday the IMF slashed global growth forecasts for this year and next to 3.3% from 4.4% and to 3.9% from 4.5% respectively, adding to worries in markets. The IMF highlighted the threats posed from the European debt crisis, where the euro area is predicted to collapse into recession while recording 0.5% contraction in 2012.
Today, policy makers and business leaderswill meet at the annual meeting for the World Economic Forum which is titled the great transformation: shaping new models, where the meeting will discuss many issues yet the main focus will be on the European debt crisis.
Later in the day, the Fed is predicted to keep the borrowing cost in the range between 0.0% and 0.25% to boost growth, where the first time the FOMC will announce interest rate forecasts.
Concerning the dollar index, which tracks the dollar movements versus a basket of major currencies, it rebounded to touch a high of 80.23, compared with the day's starting level of 79.77.
Oppositely the EUR/USD pair dropped on the daily basis to trade around 1.2970 after recording a high of 1.3051 and a low of 1.2956.
The trading range for today is among the major support at 1.2795 and the major resistance at 1.3195.
As for the USD/JPY, it rose sharply for the third day after a Japanese report showed that trade balance recorded a deficit for the first time in 31 years on drop in exports. The pair is currently trade around 78.17 after reaching a high of 78.20 and a low of 77.59.
The trading range for today is among key support at 76.10 and key resistance now at 78.30.
Moving to the GBP/USD pair, it halted its upside rally on the daily charts, after a report showing that the British economy recorded wider than expected contraction of 0.2% in the fourth quarter from 0.6% expansion in the third quarter and estimates of 0.1% contraction.
The pair is currently hovering around 1.5595 while recording a high of 1.5627 and a low of 1.5529, while the trading range for today is among key support at 1.5370 and key resistance at 1.5720.