The euro advanced for a second day versus the greenback on hopes Greece is coming closer to a debt-swap deal with private creditors as the participation rate climbed to 60% before a deadline of 10 p.m. Athens time tonight, where eyes will track ECB rate decision and Draghi's press conference.
Many large creditors announced their participation, including Greece's largest banks and pension funds, plus more than 30 European banks and insurers, which represent 60% participation with a total of 124 billion euros, according to data compiled by Bloomberg.
German Finance Minister Wolfgang Schaeuble expressed his optimist with tonight's deal.
On the other hand, Greek Finance Minister Evangelos Venizelos warned that his country may activate collective action clauses (CACs) to make private-sector bondholders bare losses if they did not agree on the debt-swap deal before a deadline of March 8.
Moreover, the ECB is predicted to leave borrowing cost unchanged at its low level of 1.00% to boost growth, probably till assessing the effect of LTRO 2 on the 17-nation region, taking wait-and-see stance.
The EUR/USD pair is currently showing advance to trade around 1.3220 near the day's high of 1.3228 while the low was recorded at 1.3133.
The trading range for today is among key support at 1.2975 and key resistance at 1.3320.
Oppositely, the U.S. dollar retreated to move close to the day's low of 79.35 after opening at 79.68, according to the six-currency gauge, the dollar index, which tracks the dollar movements versus a basket of six major currencies.
Versus the yen, the greenback fell for a second day despite the first time in three years current-account deficit recorded by the Japanese economy in January.
The pair is currently trading around 81.40, where the day's high was seen at 81.56 while the low was hit at 81.06, where the trading range for today is among key support at 80.00 and key resistance now at 82.50.
Moving to the British pound, it also rose against the green currency before the BoE's monetary decision which will probably include a hold in both interest rate and APF quantity.
The pair is trading around 1.5798 after recording a high of 1.5830 and a low of 1.5721, where the trading range for today is among key support at 1.5515 and key resistance at 1.5925.