The British pound continued its decline against majors after comments from the Chancellor of the Exchequer George Osborne in his budget report which included cutting growth forecasts for the UK this year and in 2012.
Osborne cut growth forecasts for 2011 to 1.7% from 2.1% and to 2.5% from 2.6% next year, and he expects unemployment to peak this year, adding to concerns amid the rapid acceleration in prices which is threatening recovery.
The general sentiment in market is full of concerns as the situation in Libya and Japan is worrying. Western allies are preparing for a strong attack on Libyan ground forces while in Japan radiations transmitted into water and food causing another panic.
The jittery situation in the Middle East pushed gold and oil to trade higher today along with other safe haven currencies such as yen and franc.
The dollar, also rebounded to trade at 75.86 compared with yesterday's closing of 75.47, according to the dollar index gauge.
The British pound versus the dollar, it pared gains accrued over the previous four sessions as it dropped sharply to 1.6227 after the breakout of support at 1.6350, where the day's high was seen at 1.6382 and low was recorded at 1.6217.
The trading range for today is among the key support at 1.6225 and the key resistance at 1.6595.
Concerning the euro-dollar pair, it fell for the second day to trade at 1.4110 after the breakout of support at 1.4190. The pair touched the highest point at 1.4214 and the lowest at 1.4107.
Today, data from the euro area showed a drop in industrial new orders for the month of February below expectations ahead of the release of manufacturing and services data tomorrow.
The trading range for today is among the key support at 1.4060 and the key resistance at 1.4420.
With regard to the dollar-yen pair, it is currently trading near the day's opening level at 80.97 after hitting a high of 81.07 and a low of 80.68.
The trading range for today is among the key support at 79.00 and the key resistance at 81.80.