The British pound remained firm against the U.S. dollar after the release of upbeat labor market data from the U.K., while the dollar remained under pressure before a critical vote on a four-month extension of U.S. debt limit.
The cable rose versus the greenback for a second straight session after a report released today showing U.K. jobless claims dropped 12,100 in Dec., the lowest since June 2011, and unemployment rate for the three months ended Nov. retreated to 7.7%, the lowest since the quarter through April 2011.
The upbeat data enhanced demand on the pound to continue its upside correction against the dollar, where investors eyes will focus on Friday`s fourth-quarter GDP data which is predicted to show that the British economy contracted in the last three months of 2012.
Meanwhile, the GBP/USD is trading around 1.5870 after touching a high of 1.5888 and a low of 1.5801.
The trading range for today is among key support at 1.5690 and key resistance at 1.6000.
On the other hand, the dollar remained under pressure for a third straight session ahead of an important vote today on extending the U.S. borrowing limit till May 19, where the Republicans want to press to make the budget that will be discussed in April to include further spending cuts.
Moreover, the yen remained the biggest winner as the delay of the new open-ended asset purchases program announced by the BOJ this week will become effective from next year.
The USD/JPY is currently trading lower around 88.53 after falling from a high of 88.78 to hit a low of 88.05, where the trading range for today is among key support at 86.80 and key resistance at 90.85.
As for the EUR/USD pair, it is currently trading near the day`s opening of 1.3322 after touching a high of 1.3353 and a low of 1.3284 despite optimistic announcement from Draghi on Tuesday that “darkest clouds’ over the euro area have receded.
The trading range for today is among the key support at 1.3200 and key resistance at 1.3505.