Safe havens lost their advance seen over the past couple of weeks as the Swiss franc dropped after the SNB unexpected cut to interest rate, the yen fell on expected further easing in monetary policy to halt the currency's appreciation, and the dollar slipped after Moody's warned that the U.S. top rating is still at risk of a downgrade.
First, the Swiss franc, which has been the biggest winner last year as it benefited from the escalating European debt crisis which triggered haven demand, dropped sharply against majors following the unpredicted cut in the three-month Libor interbank rate to a range between 0.00-0.25 percent compared with the prior 0.00-0.75 percent range.
In addition, the SNB said it would increase the supply of francs in the market over the next few days to halt the franc's rise which is deemed as overvalued according to the SNB which pledged of further measures if necessary.
Concerning the EUR/CHF pair, it soared to trade around 1.1066, recording a high of 1.1147 a low of 1.0793.
The euro rose despite the report showing that services sector expansion slowed to 51.6 in July compared with 53.7 in June, where both services and manufacturing growth expanded at the slowest pace in nearly two years.
Still, there are debt woes in the euro area in spite of the announced second bailout package for Greece as the Italian and Spanish bond yield continued to surge to record high versus German bunds on political tensions.
Moreover, the U.S. dollar fell against a basket of major currencies after Moody's said there is still risk that the U.S. may lose its AAA top rating, giving the world's largest economy negative outlook.
Later in the day, U.S. ADP employment change is predicted to retreat to 100,000 jobs in July from 157,000 added jobs in June.
Concerning the USD/JPY pair, it is currently showing a slight decline on the daily basis to trade at 77.07 after touching a high of 77.39 and a low of 76.95.
The trading range for today is among key support at 75.25 and key resistance now at 79.55.
Moving to the British pound versus the dollar, it surged to 1.6382 while the day's high was depicted at 1.6407 and the lowest level was seen at 1.6249.
The sterling got a boost after a report showing that U.K., services sector accelerated in July to 55.4 from the prior 53.9, beating analyst's forecasts of 53.2.
The trading range for today is among key support at 1.6000 and key resistance at 1.6630.