The euro rebounded versus the dollar after the release of better-than-expected German investor confidence report which revived hopes the German economy is on the right track, especially as Moody's affirmed the country's top rating and said the rating is appropriate.

The upbeat report, which followed a wave of optimistic data from the euro area's largest economy, managed to offset the negative impact of Moody's downgrade to six euro area nations yesterday and warning to cut France and U.K. top rating.

Yesterday, Moody's cut the credit rating of six euro area economies, including Italy, Spain and Portugal, while warned of a downgrade to France's top rating, stating that the increasingly weak macroeconomic prospects as well as the uncertainty over the euro area's prospects for institutional reform of its fiscal and economic framework, threaten the implementation of domestic austerity programs and the structural reforms that are needed to promote competitiveness.

Eyes tomorrow will track the euro area Finance Chief's meeting to see the final decision of the Greek aid package in addition to details of the extra 325 million euros of spending cuts that will be identified.

Concerning the EUR/USD pair, it currently showing some advance on the daily basis to trade around 1.3200, after falling to a low of 1.3125, where the pair found strong support at that level, while the day's high was recorded at 1.3215.

The trading range for today is among key support at 1.2925 and key resistance at 1.3375.

The U.S. dollar, on the other hand, surrendered its earlier gains against a basket of major currencies, where the dollar index slipped to a low of 78.94 compared with the day's opening level of 79.00.

The USD/JPY continued its rise after the BoJ unexpectedly expanded its asset buying and lending scheme by 10 trillion yen to 65 trillion yen.

Currently, the pair is trading around 78.00, SMA 200 level, after reaching a high of 78.19 and a low of 77.34, where the trading range for today is among key support at 76.70 and key resistance now at 79.15.

Moving to the British pound, it is showing decline to trade near two-week low versus the greenback, impacted by warnings from Moody's that U.K. may be prone to a downgrade in the coming period and its change to negative outlook.

Data from the U.K. which showed that inflation dropped to 14-month low to 3.6% in Januarys from the prior 4.2% did not have much impact on the pair's movements.

The GBP/USD is meanwhile trading around 1.5755 after touching a high of 1.5769 and a low of 1.5682.

The trading range for today is among key support at 1.5420 and key resistance at 1.5935.