The 16-nation currency resumed its advance against majors after the ECB rate decision and Trichet's press conference, where the ECB left the interest rate at 1.00% in July, while Trichet said that further liquidity may be adjusted if necessary which boosted confidence in the European common single.

On the other hand, the dollar slipped against a basket of major currencies as seen by the dollar index which dropped to 83.67 from the day's opening at 83.91, but it is currently getting support at 83.70 levels. A report showing that U.S. jobless claims slumped did not support the dollar but conversely it increased risk appetite, driving investors to buy higher-yielding assets.

With regard to the euro-dollar pair, it is surging for the third day, where the pair is doing attempts to remain above 1.2680 level. Currently, the pair is trading at 1.2682 while earlier today the pair recorded a high of 1.2694 and a low of 1.2618, whereas for the rest of the day the pair is predicted to move between support and resistance at 1.2610 and 1.2700 respectively.

Today, Trichet said there is no need for the ECB to intervene in bond market and there will be no change in bond purchase program, referring that the three month tender will continue for the upcoming few months. The bank's support and monitor to markets is boosting confidence ahead of announcing banks stress tests results later on this month.

As for the sterling-dollar pair, it retreated after the sterling has touched its highest level against the dollar following the release of mixed economic data. However, due the increase in risk appetite behavior by investors the pair pared some of its earlier decline as it rebounded to 1.5156 after dropping to a low of 1.5120. Today, the BoE left both interest rate and APF quantity unchanged but the decision did not affect the pound as the announcement matched forecasts. For the rest of the day, the pair is expected to move between support at 1.5080 and resistance at 1.5230.

Relative to the dollar-yen pair, it rebounded for the second day to halt the downside fall seen the daily charts as optimism damped demand on the yen as refuge. Meanwhile, the pair is trading at 88.47, recording a high of 88.64 and a low of 87.64, whereas support is seen at 87.90 while resistance is at 89.45.