The pound and euro gained today in a day thatincludes the release of inflation datafrom major economies.
All inflation data has shownacceleration in pricesin December; German annual CPI remained at 1.7%, Swiss import and producer prices inclined to 0.3% from 0.1%, UK PPI output rose to 4.2% annually from 3.9%, euro zone CPI rose to 2.2% from 1.9%, and finally US CPI is due later in the day.
Yesterday, Both BoE and ECB left interest rate and stimulus plans unchanged in January, yet Trichet noted that inflation which was triggered by the rise in commodity prices, especially oil, will continue to rise on the short term and the ECB may intervene through raising interest rate if needed.
On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, is now traded near the day's opening level at 79.15 after falling to a low of 78.80 and touching a high of 79.30, ahead of the release of a parade of important US data.
Concerning the euro-dollar pair, it is showing slight incline on the daily and 4-hour charts but it pared its earlier advance to retreat to 1.3375 from a high of 1.3475 while the lowest point was recorded at 1.3320, where it is meanwhile doing attempts to remain above 1.3370.
The trading range for today is among the key support at 1.3065 and the key resistance at 1.3325.
Moving to the royal pair, it inclined on the daily charts, but stopped its rise as it became close to strong resistance at 1.5875 which pushed the pair down to trade at 1.5842.
So far, the pair has recorded a high of 1.5865 and a low of 1.5808, whereas the trading range for today is among the key support at 1.5700 and the key resistance at 1.6060.
With regard to the dollar-yen pair, it is now trading close to the day's opening at 82.80 after falling earlier today to record a low of 82.39 before it rebounded to touch a high of 82.93, while the trading range for today is among the key support at 81.05 and the key resistance at 83.70.