EU Finance Ministers started a two-day meeting in Brussels today, in order to discuss the debt crisis. Germany is leaning towards providing Portugal with a bailout plan, after continuously refusing extending the rescue fund program that is set to expire in 2012.
BoJ's Shirakawa said earlier today that the European debt crisis continue to influence markets and cause severe volatility due to the debt concerns that affects traders.
Czech Republic will offer €2.0 billion of bonds as the government pledged to slash its deficit, the timing depends on market conditions, according to Deputy Finance Minister Jan Gregor.
Gregor said that I would welcome it if we managed something similar this year, adding that Investors are registering the credibility of theCzech Republic, the government aims to sell one or two billion euros of bonds in 2011.
Despite all that, the US dollar index, which tracks the performance of the dollar against six-major currencies, fell on the daily scale, to trade at 79.23, compared with the 79.37 where it reached the highest at 79.59 and the lowest at 79.05.
The European shared currency trimmed some of the losses acquired, but still slumped on the daily chart, reaching 1.3315, compared with the opening levels of 1.3383 where the pair reached the highest at 1.3384 and the lowest at 1.3242.
Further bearishness is expected, with the stochastic oscillator trading in an overbought areas, therefore the pair is expected to decline and target the support at 1.3190.
The British pound surged in trading, extending the weekly advance that started January 7th, the pair breached the resistance at 1.5915 while attempting to obtain a four-hour closing above those levels would allow the pair to target the resistance at 1.5970.
The pair is currently trading at 1.5932 setting a high of 1.5953 and a low of 1.5833, this is compared with the opening levels of 1.5864.
As for the dollar's trading against the Japanese yen, the single currency fell on the daily scale to 82.54, compared with the opening levels of 82.78 where it managed to set the highest at 83.00 and the lowest at 82.33.
The pair's attempt to breach 82.50 would pave the path for the pair to target 82.00 and 81.50, keeping in mind the importance of obtaining a daily closing below the mentioned levels to achieve the suggested targets.