The U.S. dollar showed slight advance before the release of industrial production and confidence data, which is expected to show the U.S. economy is on the right track of recovery.
The green currency managed to rebound on Friday's trading after the drop seen yesterday on signs the U.S. economy is strengthening and QE3 is not coming any soon.
The Fed said this week that the bank predicts a moderate economic growth and gradual decline in joblessness as the labor market strengthens.
Yesterday, data showed that U.S. initial jobless claims retreated to 351,000 in the week ended March 10 from forecasts of 357,000 and a revised of 365,000. Manufacturing indices also showed better-than-expected improvement.
Today, industrial production is predicted to advance 0.4% in February from the prior flat reading, while University of Michigan confidence is estimated higher at 76.0 in March from a preliminary of 75.3.
Against the yen, the greenback continued the rally above an 11-month high on speculations the BoJ may add more stimulus. The pair trades now trade around 83.70 after recording a high of 83.83 and a low of 83.25.The suggested trading range for today is among key support at 82.20 and key resistance now at 85.00.
Moreover, the euro plunged after European Central Bank Governing Council member Erkki Liikanen said officials should ramp up to end crisis-combating monetary tools, where euro area trade surplus turned to a deficit in January.
The EUR/USD pair is currently trading around 1.3072, where the day's high was touched at 1.3099 while the low was recorded at 1.3045.The projected trading range for today is among key support at 1.2860 and key resistance at 1.3320.
Moving to the British pound, the royal currency advanced for a second day against the green currency before U.K. Chancellor of the Exchequer announces U.K. annual budget next week, amid expectations the government may cut taxes on people who make more than £150,000from 50p to 40p.
The pair is trading around 1.5730 after recording a high of 1.5741 and a low of 1.5692, where the trading range for today is among key support at 1.5515 and key resistance at 1.5925.