The European common currency remains under mounting pressure, before bond selling by Spain and France which may witness increase in borrowing cost, after the delay of Greece's second bailout and Moody's warnings to downgrade several global banks, including UBS AG and Credit Suisse Group AG, and securities firms.
Worries intensified in markets after the delay of Greek aid which was postponed till next week when euro area finance chiefs gather. Jean Claude Junker said late yesterday Europe is set to make all the necessary decisions on Feb. 20.
In addition, Moody's said on Thursday 17 global banks and security firms are under review for possible downgrade by several notches, referring that some European insurers may be prone to a cut in credit rating due to the risks posed from the European debt crisis.
Later in the day, eyes will track France and Spain as they are looking forward to selling bills worth 14.3 billion euros. France aims to sell 8.5 billion euros of two- three- and five-year bonds while Spain intends to sell debt due in January and July 2015 and October 2019 in the first test to the two countries after Moody's downgrade to six euro area economies, including Italy, Spain and Portugal, and warning of a downgrade to France's top rating.
Concerning the EUR/USD pair, it plunged for the fifth straight session to trade near three-week low around 1.2995, after falling to a low of 1.2981 while the day's high was recorded at 1.3066.
The trading range for today is among key support at 1.2790 and key resistance at 1.3230.
The U.S. dollar, on the other hand, advanced against a basket of major currencies, where the dollar index surged to a high of 80.07 compared with the day's opening level of 79.65.
The USD/JPY continued its rally, heading to 3-1/2 month high, where the pierce of SMA 200 level at 78.00 paved the way for further rise.
Currently, the pair is trading around 78.77, where the day's high was seen at 78.82 while the low was touched at 78.34.
The trading range for today is among key support at 77.60 and key resistance now at 80.00.
Moving to the British pound, it is showing some decline versus the greenback, trailing the general sentiment which damped demand on high-yielding currencies.
The GBP/USD is meanwhile trading around 1.5670 after touching a high of 1.5699 and a low of 1.5657.
The trading range for today is among key support at 1.5420 and key resistance at 1.5880.