The euro pared its earlier losses after ECB council member Mersch said the ECB is ready to raise interest rate next week to curb inflation.

The upbeat German consumer confidence released earlier today could not uplift the euro, where the support came after Mersch announcements.

The ECB may be among the first key central banks to raise interest rate after the rate has climbed to 2.4% in January, exceeding he bank's desired 2% target.

In fact, increasing the borrowing cost will encourage some investors to invest in euro which gave some support to the European common currency today.

Concerning the euro-dollar pair, it rebounded from a low of 1.3524 to 1.3665, where it is currently trading, while the day's high was recorded at 1.3684.

The trading range for today is among the key support at 1.3425 and the key resistance at 1.3825.

On the other hand, the dollar reversed its earlier gains as the dollar index, which tracks the dollar movements versus a basket of major currencies, dropped from a high of 78.31 to trade at 77.75 while the day's low was recorded at 77.66, ahead of US consumer confidence which is predicted to show a rise to 65.0 in February from 60.5 in January.

Earlier today, safe-haven assets and oil bounced while shares declined on escalating tensions in the Middle East and North Africa specially after the Massacre launched by the Libyan President Qaddafi.

Moreover, the pound also pared some of its losses, pushed up by the 4-hour and 1-hour charts after the buoyant public finance report which showed surplus in January.

The royal pair is currently trading at 1.6166 after reaching a high of 1.6227 and a low of 1.6130, where the pair is having solid support at 1.6100.

The trading range for today is among the key support at 1.6070 and the key resistance at 1.6415.

With regard to the dollar-yen pair, it is currently trading near the day's opening level at 83.12 after recording a high of 83.53 and a low of 82.77.

The trading range for today is among the key support at 81.45 and the key resistance at 84.25.