The Japanese yen and U.S. dollar advanced against majors as investors bought them as safe-haven amid concerns in markets that China will limit its bank lending and tighten its monetary policy faster than expected, while markets were slightly impacted by the U.S. confidence report which improved in January. The dollar index, which tracks the dollar movements versus a basket of major currencies, edged up today to 78.50 from the day's opening at 78.17.
With regard to the euro-dollar pair, it declined on the daily and 4-hour charts. The pair is continuing its bearish pattern that started in December. The euro fell below the lowest in 5 months against the dollar after Stark, ECB member, mentioned that he is worried about the swelling budget deficit in EU countries, especially Greece. Meanwhile, the pair is traded at 1.4057 after reaching a high of 1.4179 and a low of 1.4040, where the coming support is seen at 1.4000 and next resistance is at 1.4140.
As for the sterling-dollar pair, it is showing a decline on the daily charts, but facing upside pressure from the 4-hour and 1-hour charts. The pound fell earlier today after GDP for the fourth quarter came lower than expected at 0.1%, while economists predicted 0.4% expansion. Later on, King mentioned that he is planning to put restrictions on bank risk-taking, trailing Obama's plan. Now, the sterling is traded at 1.6146 after falling to a low of 1.6089 and reaching a high of 1.6266, where it is moving between support at 1.6100 and resistance at 1.6205.
Relative to the dollar-yen pair, it is edging down on the daily and 4-hour charts as it is traded at 89.47 after dropping earlier to a low of 89.36, while it stopped inclining after recording the day's high at 90.55. The pair is now close to doing 50.0% Fibonacci retracement at 89.28 to the upside trend that started at the beginning of December. The pair is expected to face the coming support level at 89.00, while the resistance is spotted at 91.10.