Tensions over the raise of U.S. debt ceiling eclipsed the wave of optimist that prevailed last week when European leaders announced a second bailout for Greece in addition to other measures that would halt the spread of debt contagion to haunt other debt-laden nations in the region.

As U.S. policy makers failed to reach an agreement over increasing debt limit before August 2 to avoid a possible downgrade by rating agencies to the U.S.'s top rating.

The threat of default is on the horizon due the large budget deficit that coincides with sluggish growth pace.

Moreover, worries intensified with the downgrade of Moody's Investor Services to Greece further into junk as the second bailout plan included the participation of private sector investors which is considered a default according to the three rating agencies.

Under the accord, the jittery situation provoked the rush to safe havens led by gold and Swiss franc at the expense of risky assets, especially shares.

Gold rose to record high where it is currently trading near $1620 an ounce while the franc was the biggest gainer as U.S. debt problems and expectations of possible intervention by the BoJ to halt the yen's appreciation lowered the appeal of the greenback and the yen.

With regard the euro-franc pair, it is showing significant decline on the daily basis where the pair is currently trading at 1.1566 after recording a high of 1.1715 and a low of 1.1528.

Moving to the British pound versus the dollar, it dropped for the second day amid absence of data from both economies where the grim general sentiment pushed the pair to the downside to trade at 1.6285.

So far, the pair has recorded a high of 1.6343 and a low of 1.6259, whereas the trading range for today is among key support at 1.6095 and key resistance at 1.6440.

Concerning to the dollar-yen pair, it is showing slight decline on the daily basis, where the pair is hovering around 78.20 while it opened the day at 78.30, whilst the high was recorded at 78.55 and low is at 78.03.

The trading range for today is among key support at 77.10 and key resistance now at 79.55.