Lower-yielding currencies led by the yen declined versus higher-yielding currencies on optimism as stock markets rebounded, European confidence inclined in April and European flights reopened gradually today. The U.S. dollar slipped against a basket of major currencies paring its earlier advance after hitting resistance at 81.10 as seen by the dollar index on the daily charts. The index plummeted to 80.80 from the day's opening at 80.91.
With regard to the euro-dollar pair, it is showing a slight incline on the daily and 4-hour charts after European and German confidence improved in April as seen by ZEW survey released today. However, fears that Greece may need additional aid from the EU and IMF to cover its debt is capping the euro from advancing more ahead of the EU and IMF emergency meeting in Athens next week, while ash clouds eased causing the return of many flights today. Currently, the pair is trading at 1.3507 after gaining support 1.3480 while recording a high of 1.3522 and a low of 1.3447, whereas support is seen at 1.3465 while resistance is at 1.3515 then 1.3590.
As for the sterling-dollar pair, it also inclined on the daily and 4-hour charts after inflation exceeded the 3% ceiling set by the BoE for the second time this year. CPI rose to 3.4% in March from 3.0% in February. However, U.K. remains under political pressure on expectations there will be no clear winner on May 6 elections which is raising concerns that the new government will not be able to tackle the large budget deficit. Meanwhile, the pair is trading at 1.5407 reaching a high of 1.5432 and a low of 1.5286 while it is expected to move between support at 1.5280 and resistance at 1.5455.
Relative to the dollar-yen pair, it is moving to the upside on the daily charts for the second day after getting support at 91.65 yesterday, whilst it is currently trading at 92.91 after reaching a high of 92.95 and a low of 92.37, whereas support is seen at 92.25 while resistance is at 93.20.