The Japanese yen and U.S. dollar advanced against majors after debt woes sparked on speculations Greece, Spain, and Portugal will not be able to rein in their budget deficits. In addition, the rise in U.S. job claims raised concerns ahead of the release of the jobs report tomorrow which increased the appeal of the yen and dollar as refuges. The dollar index, which tracks the dollar's movements versus a basket of major currencies, spiked to 79.90 from the day's opening at 79.41.
With regard to the euro-dollar pair, it declined on the daily and 4-hour charts to continue its bearish pattern that started at the beginning of December. Today, the ECB left the interest rate unchanged at its low level in February and announced it will end the 6-month tender in March. However, talks about the Greek debt and plan were the main focus in Trichet's speech. Also, Trichet said strong dollar is better for the U.S. and is boosting European exports. Meanwhile, the pair is traded at 1.3779 after reaching a high of 1.3902 and a low of 1.3775, where the coming support is seen at 1.3735 and next resistance is at 1.3800 then 1.3860.
As for the sterling-dollar pair, it is also declining on the daily and 4-hour charts. The pound fell today after the BoE left the interest steady at 0.5% and ended the 200 billion pounds stimulus. The pair extended its downside trend that started since mid November after the breakout of support at 1.5830. Now, the sterling is traded at 1.5783, recording a high of 1.5917 and a low of 1.5758, while it is moving between support at 1.5735 and resistance at 1.5800.
Relative to the dollar-yen pair, it edged down on the daily and 4-hour charts, spurred by fears with regard recovery. The pair is currently traded at 90.40, close to strong support at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 91.06 and a low of 90.32, while it is expected to face the coming support level at 90.20, while the resistance is spotted at 90.80.