The European common currency and the US dollar are under pressure ahead of the rate decision and Trichet's speech in the euro zone and jobless claims data in the United States.

The euro is showing slight advance against the dollar and pared some of its losses against the yen before the September's rate decision.

Expectations refer that the euro zone will leave the borrowing cost unchanged at 1.00% and leave non-standard measures till next year to reinvigorate recovery that is gathering momentum. Also, Trichet will announce the new growth forecasts for the current and next year which will give a clue about the outlook of the euro area amid the slowdown in global recovery.

In the US, eyes will be on jobless claims data later on today and non-farm payrolls report tomorrow as they will provide evidence about the status of the labor market in the world's largest economy, noting that estimates refer to a rise in initial jobless claims and unemployment rate.

The dollar index, which tracks the dollar movements against six major currencies, retreated to 82.38 compared with the day's opening at 83.44.

Concerning the euro-dollar pair, it rose slightly today after getting support at 1.2780 levels which lifted the pair up to 1.2820, where it is currently trading. Today, GDP for the second quarter was upwardly revised on the year to 1.9% from 1.7%, while on the quarter the reading remained unrevised at 1.0%.

The euro-dollar pair so far has touched a high of 1.2838 and a low of 1.2774, while for the rest of the day the pair is expected to move between support and resistance at 1.2770 and 1.2900 respectively.

Turning to the sterling-dollar pair, it is showing decline on the daily charts as today's downbeat data pushed the pair to the downside. House price indicator unexpectedly dropped 0.9% in July while PMI construction slipped to 52.1 in August from 54.1 in July which raise concerns the British economy will witness slowdown in the second six months of the current year. The pair gained support at 1.5322 which represents 38.2% Fibonacci level to the upside trend that started since the end of May.

The royal pair is currently trading at 1.5402 after touching a high of 1.5458 and a low of 1.5370, whereas it is expected to move between support at 1.5310 and resistance at 1.5475 for the rest of the day.

With regard to the dollar-yen pair, it is retreating on the daily basis but facing some upside pressure from the 4-hour and 1-hour charts ahead of the release of US job data amid the absence of intervention from the BoJ to weaken the currency that is currently hovering above 15-year high against the dollar.

So far, the pair is trading at 84.15 after recording a high of 84.55 and a low of 83.97, while support is seen at 83.85 while resistance is at 84.85.