The dollar after climbing the last couple of days against major currencies has now reversed its gains since the U.S. economy is scheduled to release housing data regarding housing starts and building permits while both expectations show that the housing market is worsening. Investors are very sensitive to any housing data since they are well aware that this was the start of the downfall of the nation led from the collapsing sub-prime mortgage.

The euro slightly is rising today but still trading around a 10-week low versus the dollar on worries that EU Zone's banks will unveil more losses as a result of the worsening financial crisis in Eastern and central Europe. The euro may slide further in the markets on anticipations Commerzbank AG, the second biggest bank in Germany, and ING Groep NV, the largest Ductch financial firm combined together will post losses of 4 billion euros or more when their profits are posted later on today. The EUR/USD is currently trading at 1.2620 while recording a high of 1.2626 and a low of 1.2576 as the pair struggles to breach the resistance of 1.2625 as it failed to break the support of 1.2554.

The pound against the dollar is currently forming a sideways wave as yesterday the royal currency depreciated in the markets as the inflation data that was released showed that inflation is falling heavily meaning that deflation risks remain a factor in the UK economy while today the BoE will release their minutes stating why they reduced interest rates to 1 percent. The GBP/USD is traded at 1.4272 while recording a high of 1.4282 and a low of 1.4220. The momentum indicators show us that the pair is trading in narrow changes and not taking a certain trend.

The Japanese currency is continuing to lose ground in the markets as there is slight carry trades in the markets as investors are selling the lower yielding assets and buying the higher yielding assets which pressures the yen in the markets. The USD/JPY is currently trading at 92.42 while recording a high of 92.47 and a low of 92.08. For the pair we see a support at 91.80 and a resistance at 92.80.