Movements are calm today in FOREX market ahead of the awaited two-day meeting in South Korea this weekend where finance ministers and Chiefs will try to reach an agreement over managing currency, trade and macroeconomic imbalances.
US Treasury Secretary Tim Geithner said countries that have trade surplus should use their currencies to reduce imbalances, confirming that economies should not seek to devalue their currencies.
The world's top leaders will try to avoid a currency war in the coming period due to conflict in interest between countries as some may intervene, like what happened by the BoJ on September 15, to boost their exports and thereby growth.
Central banks are preparing for another round of stimulus to give another push to recovery that eased in the third quarter.
The US dollar managed to record its first weekly advance in six after announcements from Geithner and expected stimulus measures to be introduced by the Fed, while others predict the dollar will gain after the weekend's G-20 meeting, especially as Trichet mentioned that a stronger dollar is in favor of the US economy after the euro had rebounded from four-year low against the dollar in June to eight-month high this month.
The dollar index, which tracks the movements of the greenback versus a basket of major currencies, is girding for the first weekly advance in six while it is currently trading near the day's opening at 77.50 after recording a high of 77.74 and a low of 76.83.
Concerning the euro-dollar pair, it is still trading above support at 1.3890, yet below 1.4000 key resistance level, where it is trading near the day's opening levels as the improvement in German IFO was offset by the announcement that Ireland has the largest budget deficit in the euro area last year.
Meanwhile, the pair is trading at 1.3915 after recording a high of 1.3970 and a low of 1.3856, while the trading range for today is among the key support at 1.3700 and the key resistance at 1.4160.
Moving to the royal pair, it is consolidating on the daily charts in the absence of economic fundamentals from the United Kingdom, yet the pound is impacted by the anticipated sharp spending cuts announced by Osborne this week over the course of the coming four years.
Currently, the pair is trading at 1.5700 after recording a high of 1.5749 and low of 1.5654, whereas the trading range for today is among the key support at 1.5500 and the key resistance at 1.5900.
With regard to the dollar-yen pair, it slipped on the daily basis to continue its downside trend amid the weak attempts by the dollar yesterday to rebound.
The pair is currently trading at 81.20 after touching a high of 81.36 and a low of 80.97, while the trading range for today is among the key support at 79.65 and the key resistance at 82.80.