The euro and pound pared their earlier decline after the release of better-than-estimated data which boosted hopes that European economies' recovery is strengthening.

German industrial production data lifted the euro as the report showed incline to 1.8% in January from -1.5%, adding to signs of recovery following the buoyant factory orders report released yesterday.

In the UK, visible trade deficit narrowed to 7057 million pounds in January compared with the revised 9686 million pounds deficit.

Worldwide, eyes are still on Libya, where there are some hopes that Qaddafi could be defeated as the United States and its allies are discussing the imposition of no-fly zone over Libya's airspace to help rebels in their war, which helped stocks to soar and the yen to retreat.

The US dollar, on the other hand, fell to a low of 76.52 after touching a high of 76.96, as depicted by the dollar index gauge.

Concerning the euro-dollar pair, it rebounded on the daily scale after resting upon support at 1.3890 which lifted the pair higher to 1.3935.

So far, the pair has reached a high of 1.3941 and a low of 1.3853, whereas the trading range for today is among the key support at 1.3775 and the key resistance at 1.4100.

Moving to the British pound versus the dollar, it also rebounded to trim some of the losses incurred over the previous four sessions as it found support at 1.6140 which drifted the pair higher to trade at 1.6223, while it touched the highest level today at 1.6241 and lowest level at 1.6136.

The trading range for today is among the key support at 1.6000 and the key resistance at 1.6345.

With regard to the dollar-yen pair, it is showing slight incline on the daily charts, yet showing decline on the 4-hour and 1-hour charts, where the pair is currently trading at 82.70 after recording a high of 82.93 and a low of 82.62.

The trading range for today is among the key support at 81.65 and the key resistance at 83.70.