The British pound rebounded from yesterday's losses after BoE minutes for January's rate decision showed that the voting came 6-2-1 for holding both borrowing cost and APF quantity unchanged.
Policy maker Martin Weale joined Andrew Sentance for a 25 basis points interest rate hike while, on the other hand, Adam Posen insisted on adding 50 billion pounds to the APF.
King mentioned that price will stabilize amid choppy recovery and Cameron pledged to cut budget deficit.
The pound fell yesterday after the data showing that the economy contracted 0.5% in the fourth quarter, while inflation rose to 3.7% in December, putting downside pressure on the sterling
On the other hand, the dollar resumed its downside drop against a basket of major currencies as depicted by the dollar index which fell to a low of 77.74 from the day's opening at 77.93, ahead of the second-day meeting for the Fed which is expected to show endorsement to the plan of purchasing $600 billion in government debt, after Obama's urged freeze and shift in spending in his speech yesterday.
Meanwhile, the royal pair rebounded on the daily and 4-hour charts to correct some of the losses incurred the previous session, where it is currently doing attempt to remain above 1.5875.
So far, the pair is trading at 1.5880 while it recorded a high of 1.5890 and a low of 1.5767, whereas the trading range for today is among the key support at 1.5660 and the key resistance at 1.6060.
Concerning the euro-dollar pair, it is showing slight incline on the daily charts to continue rising for the third week in a row in the absence of data from the euro area today and after successful bond selling by the EFSF yesterday which issued five-year bonds that attracted 43 billion euros, exceeding the 5 billion euros targeted from the auction to finance part of the Irish bailout package.
The pair is currently trading at 1.3693, yet stopped advance after hitting resistance at 1.3718, while recording a high of 1.3721 and a low of 1.3655.
However, the pair may do a downside correction as it entered an overbought area, according to the Stochastic Oscillator momentum indicator.
The trading range for today is among the key support at 1.3500 and the key resistance at 1.3900.
With regard to the dollar-yen pair, it dropped on the daily charts, but it gained some support form the 4-hour and 1-hour charts which lifted the pair to 82.18 from a low of 81.96, while the day's high was recorded at 82.28.
The trading range for today is among the key support at 80.35 and the key resistance at 83.70.