The euro is on the line today with the ECB about to announce the rate decision with everyone still afraid of a new surprise by the European Central Bank, and with the odds high for rates to remain steady at 1.0% the focus remains on Trichet's press conference.
In general, the dollar is enjoying its second day of gains, especially as profit taking and haven demand supported greenback. Monetary tightening fears alongside jitters over the chaos and turmoil in Egypt are starting to affect stability in global financial markets. The dollar index rose from the low of 77.01 to the high of 77.30 and trading now around those areas.
As for the euro versus greenback, the pair so far settled for the high of 1.3825 before moving clearly lower for the second day, where it set the low of 1.3725. currently the pair is trading between the support of 1.3740 and the resistance at 1.3825 and likely to gather momentum to move to the upside once again, especially as stability above 1.3665 keeps the bullishness valid and hawkish comments from Trichet will take it higher.
As for sterling, it continued to trade strong rising to the high of 1.6277 and despite the decline seen after reaching this level, it is still trading positively over daily basis.
Stability for the GBPUSD above 1.6120 supports the positivity for the pair today and trading above 1.5990 is very positive to push the pair towards 1.6300. The pair currently is trading among 1.6185 support and resistance at 1.6250.
As for the Japanese yen, the dollar also stretched its gains against it, though the pair remains within yesterday's trading range. The pair touched the low of 81.47 to rise to the high of 81.76. With stability below 81.85 the bearishness remains valid in an attempt to breach 81.05 areas.
Still, with more fundamentals on the queue now and with the ECB decision and Trichet's press conference the focus will remain on the euro and the dollar for the rest of the day.