The Japanese yen and US dollar slipped for the second day, halting their advance over the past two weeks, as rebound in Asian shares from one-month low and European equities on upbeat earnings by Credit Agricole and L'Oreal eroded demand on refuges.
In addition, global concerns that recovery is sputtering have eased on expectations that heads of central banks in their meeting today will agree on leaving both borrowing cost and stimulus unchanged to boost growth which also weighed on the yen and dollar.
The dollar index, which tracks the dollar movements versus a basket of major currencies, retreated to 82.98 from the day's opening at 83.20 ahead of the release of US continuing claims which will will rise to 4498 thousands on August 21 from 4478 thousands, while initial claims will retreat to 490 thousands from 500 thousands, according to median estimates.
Concerning the euro-dollar pair, it is rising on the daily charts by it dropped to 1.2690 after touching a high of 1.2744, yet it may receive support at 1.2680. Data released today showed that the German GFK consumer confidence rose to 4.1 in September beating estimates of 4.0 which managed to ease some the fiscal concerns after Ireland's downgrade yesterday.
The euro-dollar pair so far has touched a low of 1.2648, while for the rest of the day the pair is expected to move between support and resistance at 1.2600 and 1.2730 respectively.
Turning to the sterling-dollar pair, it climbed to a high of 1.5587 but it slipped from there as it found solid resistance at that level which represents 23.6% Fibonacci level to the upside trend that started since the end of May. Today, the United Kingdom lacked economic fundamentals.
The royal pair is currently trading at 1.5514 after touching a low of 1.5455, whereas it is expected to move between support at 1.5475 and resistance at 1.5600 for the rest of the day.
With regard to the dollar-yen pair, it is currently trading near the day's opening price after it dropped from a high of 84.88. Still, Japanese policy makers did not intervene to stop the yen' rise as it touched 15-year high against the dollar earlier this week, but the Japanese Prime Minister said today officials will discuss steps to be undertaken in a meeting tomorrow.
So far, the pair is trading at 84.49 after recording a low of 84.45, while support is seen at 84.00 while resistance is at 85.35.