The US dollar rose in the European session ahead of the FOMC minutes despite expectations that it will not affect the market strongly since Bernanke already said that the US economy need more support, supporting expectations that the FEDs will keep the monetary policy unchanged until the end of this year. The dollar index is trading around 75.35 recording the high of 75.35 and the low of 75.22.
The EUR/USD pair declined in European trading today because of the fears in the financial markets about the European sovereign debt crises, where after the two-day meetings of EU finance ministers in Brussels that ended on Tuesday, the EU stressed that Greece should add more austerity measures in order to reduce its budget deficit and return it to target levels. European Commissioner for Economic and Monetary Affairs Olli Rehn stated that Greece should declare more details about its privatization plans as they should provide €15 billion this year from €50 billion assigned in the bailout received last year. The mission to assess the economic conditions in Greece by the European Union, The International Monetary Fund and ECB will remain until the end of this month. Also the finance ministers reached an agreement on limiting short selling for stocks and sovereign debt.
The pair is currently trading around 1.4248 and it still around the highest levels recorded in three days. Technically speaking, it is expected to move to the upside as far as stability prevails above 1.4265 which presents the neckline for the ascending technical pattern over four-hour basis, and will push the pair to 1.4365.
The GBP/USD declined to 1.6160 affected by the unexpected rise in jobless claims in April more than expected, BoE minutes showed a conflict between monetary policy committee' members where the voting was 1-3-5 to maintain the current monetary policy; the majority voted for the steady policy, while Posen voted to extend APF by 50 billion pound, Sentance voted to raise benchmark interest rates by 50 basis points, while Dale and Weale voted for a 25 bp increase.
The pair opened today's trading at 1.6248 recording the high of 1.6285 and the low of 1.6186. Technically speaking, the pair is expected to continue the bearish move if it breaches the critical support levels at 1.6165 which presents the neckline for a descending technical pattern as seen over daily basis and initially targeting 1.6095.
The USD/JPY pair rose to stabilize above 81.00; the pair opened today's trading at 81.09 and recorded the high of 81.18 and the low of 80.95.