The US dollar weakened during the Asian session for the third day in a row before the release of the European and Britain's rate decisions. The dollar index traded between the lowest 87.49 and the highest 88.04. The index now is trading around 87.54. the US will release today its trade balance as well as the weekly jobless claims and the monthly budget statement.

The euro against the dollar traded during the Asian session between the highest of 1.2054 and the lowest at 1.1956. Now the pair is trading around the 1.2042 level, between 1.2025 and 1.2085. Besides the ECB's interest rate decision, Germany will release the CPI's final reading while Trichet will hold a press conference after the central's bank meeting. The hourly and four hours momentum indicators point that the pair is within an overbought area, while the daily indicators show the pair might rebound from an oversold area. The pair today may trade around 1.2140 if it breaches the 1.2105 levels, and may trade around 1.1910 if it breaches the 1.1990 levels.

The pound against the dollar traded between the highest of 1.4599 and the lowest of 1.4508. Now the pair is trading around the 1.4590 levels between 1.4540 and 1.4595. The hourly and four hours momentum indicators point that the pair might rebound from an oversold area, while the daily indicators show the pair might witness a positive crossover within an oversold. The pair today may trade around 1.4770 if it breaches the 1.4680 levels, and may trade around 1.4465 if it breaches the 1.4500 levels.

The dollar against the yen traded between the highest of 91.34 and the lowest of 91.12. Now the pair is trading around 91.17 levels between 90.95 and 91.90. Japan released today its consumer confidence index, which fell to 42.7 in May from the previous 42.1. The hourly and four hours momentum indicators show the pair might rebound from an overbought area. The pair today may trade around 92.90 if it breaches the 92.65 levels, and may trade around 90.00 if it breaches the 90.40 levels.