The Japanese yen retreated against majors after announcements to Deputy Economy Minister Yasutoshi Nishimura and after the release of Chinese manufacturing report, while the euro advanced on better-than-estimated manufacturing and services data.
The yen fell against the dollar to stop its rally over the previous three sessions, when the BOJ this week to delay its new open-ended asset purchases program to next year, after Nishimura said the drop of the yen to 100 would not cause a concern.
Also, the yen was damped as a refuge after China`s report that beat estimates as HSBC flash manufacturing widened expansion to 51.9 in Jan. from 51.5 in December.
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.
The euro, on the flip side, rose against majors after a report released today showing European manufacturing and services data showed an ease in contraction in the first month of 2013.
The progress seen in the two major sectors in the euro area moves in line with the announcements of Draghi this week as he said the worst of the debt crisis may be over, stating the “darkest clouds” have lifted.
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.
However, the dollar rose against a basket of major currencies, taking advantage of its rise against other major currencies after House of Representatives managed to pass a vote to suspend the United States debt limit, where the vote was very important as it allows the government to borrow till May 19.
In addition, a report released today showed that U.S. initial jobless claims dropped last week to a five-year low, yet expectations are in favor of seeing a commitment from the Fed to continue with stimulus during their meeting next week.
Finally, the pound slipped sharply versus the greenback before a report due on Friday that may show the British economy contracted in the last three months of 2012.
Meanwhile, the GBP/USD is trading around 1.5757 after touching a high of 1.5849 and a low of 1.5755, where the trading range for today is among key support at 1.5690 and key resistance at 1.6000.