Renewed fears loom around the debt crisis in Europe, as there are fears it might curb economic growth, which causes investors to avoid higher yielding assets causing stock markets to tumble while following are major currencies, therefore giving the dollar some ground to rise. The dollar is seen inclining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 86.13 while recording a high of 86.16 and a low of 85.74.

The euro is depreciating despite Germany releasing its IF0 survey showing that business confidence rallying to a two-year high, as the focus of the markets today is on the renewed fears of the debt crisis in Europe. As investors remain worried about the outlook of the euro zone, causes them to sell the euro in fears it might decline further. The euro dollar pair is currently trading at 1.2274 above the support of 1.2215 and below the resistance of 1.2330 while recording a high of 1.2353 and a low of 1.2263. Over the one-hour basis, we see that the pair is being traded in an oversold area, supported by the technical charts momentum indicators.

It is a big day in the United Kingdom today, as markets wait around for the emergency budget meeting to take place at 11:30 GMT which will determine the spending plan by the government which is led by David Cameron. Ahead of the release of the budget report, we see the pound tumble against the federal currency as the pair is currently trading at 1.4703 while posting a high of 1.4796 and a low of 1.4693. The daily charts are supporting the bearish trend while there is a support at 1.4635 and a resistance at 1.4770.

The yen rallies in the markets as investors are seeking a refuge against the sovereign debt in Europe, which is boosting the appeal of the yen causing it to rally past the dollar. The pair is currently trading at 90.56 between the support of 90.00 and the resistance of 91.45 while recording a high of 91.09 and a low of 90.51.