The U.S. dollar and Japanese yen slipped today against higher-yielding currencies, paring their earlier gains after President Obama mentioned that he is planning to boost the economy through cutting taxes and enhancing spending, while the FED announced that it will keep the expansionary monetary policies for an additional period which erased concerns that the FED would remove stimulus and raise interest rate faster than expected. The dollar index, a gauge of the dollar's movements versus a basket of major currencies, reached 78.70 from the day's high of 79.06.
With regard to the euro-dollar pair, it is consolidating on the daily charts after recouping earlier losses when it touched a low of 1.4004. It seems that the pair may continue its bearish pattern that started in December. German unemployment rose to 8.2% in January from 8.1%, while economic confidence in the euro spiked to 95.7 from 94.1, according to the data released today. Meanwhile, the pair is traded at 1.4003 after reaching a high of 1.4052, where the coming support is seen at 1.3990 and next resistance is at 1.4050.
As for the sterling-dollar pair, it is showing an incline on the daily charts but showing a decline on the 4-hour and 1-hour charts. The pound rebounded from the day's low at 1.6134 as stocks rallied and spurred by Obama's speech. Now, the sterling is traded at 1.6229, where it is facing a strong resistance at that level but actually this resistance was breached earlier today when the pair reached the day's high at 1.6275. The pair is moving between support at 1.6170 and resistance at 1.6245.
Relative to the dollar-yen pair, it edged up on the daily charts, while on the 4-hour charts it is declining. The pair is currently traded at 90.23 near resistance at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 90.55 and a low of 89.85, while it is expected to face the coming support level at 89.80, while the resistance is spotted at 90.45.