The U.S. dollar declined during the European session to record its lowest in four days, affected by rising confidence supporting high yield assets after the European Commission saw good demand on the European Financial Stabilization Mechanism bonds to aid the bailouts for Ireland and Portugal, easing the prevailing debt woes. The USDIX is trading now around 75.56 compared to the opening of 75.88, and recorded the high of 75.97 and the low of 75.47.

The Euro appreciated against the U.S. dollar after Financial Times indicated that the Chinese government and Asian investors are planning to raise their share in buying European government bonds issued by the European Financial Stability Facility (EFSF) which will be auctioned in June.

Yesterday, the European Commission sold 5-years bonds raising 4.75 billion euro, in the second auction this week. The pair is trading around 1.4169 and recorded the high of 1.4195 and the low of 1.4066. From a technical viewpoint, we expect the pair to stabilize above 1.4150, and to trade between the support of 1.3910 and the resistance of 1.4360.

The Pound appreciated against the U.S. dollar and stabilized above 1.6300, where the two-days incline continues, mainly supported by the Asian countries buying 23% of the issued European bonds. The pair is trading now around 1.6308 recording the high of 1.6333 and the low of 1.6309.

Technically speaking the pair stabilized above the level of 1.6210, this is supporting the upward trend. The expected trading range for today is between the support level at 1.6100 and the resistance at 1.6520.

USD/JPY is trading during this week within tight levels between 82.20 and the support level at 81.50; the pair must breakthrough this range to define a clear new trend. The trading range for today is expected between the support level at 80.20 and the resistance at 83.50.