Amid the unrest in the Middle East and escalation in Libya between Qaddafi and protesters, investors sought to buy safe-haven assets which cause stocks to decline and Swiss franc, yen, gold and oil advanced.
The Libyan leader pledged to get the countries that dissented from his governance using armed forces to increase violence in the country that was prone to a massacre, as described by many eye witnesses, from Qaddafi's supporters.
The dollar, on the other hand, fell against a basket of major currencies as indicated by the dollar index which plummeted for the second day to touch a low of 77.00, where it found support that pushed it up to 77.20 while the day's opening level was recorded at 77.36.
The dollar waned today ahead of the release of important economic fundamentals from the US including, durable goods, continuing claims and new home sales.
With regard to the dollar-yen pair, it fell for the third consecutive session to continue its downfall that started after hitting resistance at 83.70 which pushed the pair to touch 81.85 today, while the day's low was recorded at 81.75 and the highest point was at 82.52.
The trading range for today is among the key support at 80.35 and the key resistance at 83.35.
In Europe, the improvement in European confidence which rose to 3-1/2 year high in February helped the European common currency to advance against the dollar but could not help it to incline against the yen and franc.
Earlier today, German GDP showed 0.4% expansion, in line with median forecasts. Despite the progress seen in recent data, official's talks referred to a possible interest rate hike by the ECB next week to absorb inflationary pressures stemming from the oil's climb to a high of $103.31 a barrel recorded today on the back of the tensions in Libya which hold the largest oil reserves in Africa.
Concerning the euro-dollar pair, it pared its earlier advance on the daily scale after being pulled down by the decline on the 4-hour charts which caused the pair to retreat to 1.3755 after touching a high of 1.3807 and a low of 1.3702.
The trading range for today is among the key support at 1.3610 and the key resistance at 1.3980.
The pound dropped today but may get support on speculations policy makers will raise borrowing cost after yesterday's minutes showed that Spencer Dale joined Andrew Sentance and Martin Weale to call for an interest rate rise.
The pound slipped on the daily and 4-hour charts but currently it is getting an upside push on the 1-hour charts, as it failed to breach strong resistance at 1.6250 which pushed it down to 1.6160.
The royal pair reached a high of 1.6253 and a low of 1.61341, where the trading range for today is among the key support at 1.6110 and the key resistance at 1.6415.