The markets are jittery ahead of key rates decision from the BoE and the ECB were as we know they are expected to stay at current rates of 5.25% 4.0% respectively; nevertheless the jitters are whether the BoE are to issue an accompanying statement and not wait to the minutes to be released, and more importantly what are the hints Mr. Trichet is to provide the in the regular press conference; meanwhile the dollar remains weak and fragile after another round of dollar selling from last night which the market continued to withhold till today.

The dollar index, which measures its performance against a basket of currencies, fell yesterday to it record low confirming its ongoing weakness journey against majors, especially the euro, the yen, and the dollar denominated commodities. It yesterday recorded a low of 73.36 nearly still at is lowest on records. The dollar selling is not quite over yet though technical momentum studies show that its oversold against majors as well as the index, yet nonfarm data tomorrow if shows further than expected weakness will spur broad-based dollar selling again.

Europe's single currency is still trading at its highest since introduced back in 1999; fundamentals from the past period after last month's rate decision was rather much inline with the ECB's view of current and outlook economic conditions, economic fundamentals are basically almost sound and did not much show the effect of internal slowdown as much as dampened exports, while inflation still runs noticeable high in the region at 3.2%. Slightly expected for the ECB to adopt and altering rhetoric today yet if comments are made on the current appreciation of the 15 nation currency might set markets to start the profit taking and sell the euro as its trading now among major levels near 1.5330s which if the euro manages to maintain today and tomorrow by trading and closing above will signal the way to further upside wave extension to 1.57s; the currency breached well the 1.53 setting the new intraday high at 1.5346 and now today's low from which the euro inclined has become a solid support near 1.5270s.

As for the British pound, after falling to as low as 1.9720s yesterday it managed to reverse back to the upside with strong volume to end the day breaching major levels closing above 1.99 levels. The MPC decision was quite debated this month though after incoming data showed real upside price pressure along side now seen record energy price breaching $105 per barrel BoE fears are justified for gradual easing and economic performance showed better than expectations and did not deteriorate much as previous pessimist projection that suggested output growth to slow this year to below 2.0%. Sterling continued the upside headings to set the high at the strong resistance level of 1.9980 and as long as the pound remains above 1.9960s it in the clear signaling to the $2 levels once again.

The yen has come back to lack momentum once more as risk appetite offsets the dollar weakness to the funding currency, after it weakened against the euro and the pound in the US session yesterday; the dollar against the yen was able to set the high at 103.99 yet couldn't penetrate into the 104 once more while the downside levels was also limited as the pair touched the low at 103.14 in which demand was seen to take the pair back to current trading levels at 103.40s.