The euro strengthens against majors on expected further tightening by the ECB after raising borrowing cost by 25 basis points yesterday to 1.25% as Trichet referred to this in his speech.
Yesterday, the euro fell as the rate hike raised concerns that the debt-strapped nations have to pay higher costs for loans, especially with the increasing likelihood that Portugal will accept an international bailout soon. But today the effect of the hike started to take place on the market.
Also, the advance in German exports by 2.7% in February gave a strong boost to the euro that Germany will lead recovery in the euro area.
On the other hand, the dollar continued its drop to touch the lowest level since 2009 against a basket of major currencies, where the dollar index fell to a low of 75.09 compared with the day's opening of 75.53.
Concerning the euro-dollar pair, it rose to trade at 1.4415 after recording a high of 1.44211 and a low of 1.4289, whereas 1.4450 then 1.4500 are the upcoming key resistance levels.
The trading range for today is among the key support at 1.4280 and the key resistance at 1.4580.
Moving to the British pound versus the dollar, it rose on the daily charts to touch a high of 1.6426, yet the downward pressure from the 4-hour pushed the price to 1.6365 while the day's low was recorded at 1.6313.
Today, the pound gained some support after the news that showed that annual PPI output rose to 5.4% output from 5.3%, to raise speculations the BoE will increase borrowing cost to halt the inflation's rally. However, the pair is currently trading in an overbought area and therefore a downside correction is expected, where the trading range for today is among the key support at 1.6260 and the key resistance at 1.6555.
With regard to the dollar-yen pair, it continued its advance on the daily charts after taking a breather yesterday as the weakness of the yen is pushing the pair higher as expectations show that the BoJ will not raise interest rate to enhance growth.
The pair is currently trading at 85.25 after reaching a high of 85.38 and a low of 84.80, while the trading range for today is among the key support at 83.90 and the key resistance at 87.85.