| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.4720(M) | 92.45(M) | 1.7105(M) | 1.0490(M) | |
| Resistance | 1.4685(M) | 92.25(M) | 1.7045(M) | 1.0463(M) |
| 1.4630(M) | 91.80(M) | 1.6835(M) | 1.0395(M) | |
| 1.4570(M) | 89.70(M) | 1.6645(M) | 1.0350(M) | |
| Support | 1.4500(M) | 88.85(M) | 1.6590(M) | 1.0320(M) |
| 1.4465(M) | 88.60(S) | 1.6480(M) | 1.0140(M) |
The British Pound gained against the dollar on Thursday after the Bank of England kept interest rates unchanged, reassuring traders who had braced for the possibility of additional quantitative easing measures. The BoE held its benchmark lending rate at a record low of 0.5 percent for the sixth month running and said it would keep its 175 billion pound asset buying programme in place. "There was a minority expectation of either the BoE cutting the rate it pays on commercial bank reserves to negative, or that the majority could have moved behind (BoE Governor Mervyn) King in voting to extend QE," said Adam Cole, global head of currency strategy at RBC Capital Markets in London. The GBP/USD is currently trading at $1.6695 as of 9:05am, London Time.
The Dollar Index fell, its longest losing streak since March, after reports showed China’s factory output and lending gained by more than economists estimated, spurring demand for emerging market assets. “Solid data in China show economic fundamentals are improving, weighing down on the dollar,” said Koji Fukaya, a senior currency strategist in Tokyo at Deutsche Bank AG. “Risk appetite is coming back.” The euro is likely to climb toward $1.4719, a level that represents a 100 percent Fibonacci retracement from the six- month low of $1.2457 reached on March 4, said Masashi Hashimoto, a Tokyo-based senior analyst at Bank of Tokyo Mitsubishi UFJ Ltd. Daily momentum indicators such as the moving average convergence/divergence chart show buy signals for the euro against the dollar, he said. The EUR/USD is currently trading at $1.4595 as of 9:10am, London Time.
The dollar’s decline this year has further to run and may continue through 2010, according to Morgan Stanley. “We remain dollar bears,” Sophia Drossos, co-head of global foreign-exchange strategy, and Yilin Nie wrote yesterday in a report from New York. “We anticipate that dollar weakness has further to extend this year, and expect an additional 6 percent decline in the dollar against its main trading partners through the end of 2010. Looking ahead into 2011, we anticipate the Fed rate-hiking cycle will become advanced enough to offer support to the dollar.”
Today's Economic Events
| Time | Event | Currency/Country | Period | Previous | Forecast | Significance | Actual |
| 18:00 | Monthly Budget Statement | USD/United States | -180.7 | 3 | |||
| 14:00 | Inventories (M-o-M) | United States | Monthly | -1.7 | 2 | ||
| 14:00 | Univ. of Mich. Consumer Confidence Index | United States | 65.7 | 2 | |||
| 14:00 | Wholesale Sales (M-o-M) | United States | Monthly | 0.4 | 3 | ||
| 12:30 | Import Price Index (M-o-M) | United States | Monthly | -0.7 | 2 | ||
| 12:30 | Exports (M-o-M) | United States | Monthly | -0.3 | 3 | ||
| 12:30 | Import Price Index (M-o-M) | United States | Monthly | -0.7 | 2 | ||
| 12:30 | Exports (M-o-M) | United States | Monthly | -0.3 | 3 | ||
| 12:30 | New Housing Price Index (M-o-M) | Canada | Monthly | -0.2 | 3 | ||
| 8:30 | PPI Input (M-o-M) | UK | Monthly | -1.4 | 0.6 | 3 | |
| 8:30 | PPI Output (M-o-M) | UK | Monthly | 0.3 | 0.4 | 2 | |
| 6:00 | Monthly Budget Statement | USD/United States | -180.7 | 3 | |||
| 6:00 | Wholesale Price Index (M-o-M) | Germany | Monthly | -0.5 | 3 | ||
| 6:00 | Wholesale Price Index (Y-o-Y) | Germany | Yearly | -10.6 | 3 | ||
| 5:00 | Consumer Confidence Index | Japan | 39.7 | 40 | 2 | 40.4 | |
| 5:00 | Consumer Confidence Households | Japan | 39.4 | 41.1 | 3 | 40.1 |
