The dollar retraced its earlier losses today against majors as depicted by the dollar index, which tracks the performance of the green currency versus six major currencies, as it rebounded from a low of 76.14 to a high of 76.92 where the dollar retreated after Bernanke remarks then it rebounded.
Fed Chairman confirmed today that adding to stimulus is guaranteed as a result of the incline in unemployment and decline in inflation. Annual CPI lingered at 1.0% in September and the reading excluding food and energy remained at 0.8%, cementing Bernanake's claim.
Other data from the United states, including retail sales and empire manufacturing, showed improvement which probably helped the dollar to rebound from its lowest level since January against the euro and 15-year low versus the yen. However, the dollar index will record its fifth weekly decline this week.
With regard to the dollar-yen pair, it pared some of the day's losses as it rebounded from a low of 80.86 to 81.34, where it is currently trading, yet the pair continued its downside trend.
The trading range for today is among the key support at 79.95 and the key resistance at 82.15.
Concerning the euro-dollar pair, it slipped on the daily charts after advancing for three consecutive sessions third consecutive sessions, yet the euro remains above $1.40 key level which may suggest further rise if it closed above this week.
Today, euro zone CPI matched forecasts at 1.8% in September, but trade deficit widened in August, but the euro wan not much impacted by the news.
Meanwhile, the pair is trading at 1.4024 after recording a high of 1.4157 and a low of 1.3984, while the trading range for today is among the key support at 1.3940 and the key resistance at 1.4250.
Moving to the sterling-dollar pair, it surged for the third day on the daily basis but it retreated to 1.6033 from the day's high of 1.6105, but breach and daily closing above 1.60 physiological level yesterday is giving the pound some momentum against the dollar in a day that lacked economic fundamentals from the United Kingdom.
The trading range for today is among the key support at 1.5935 and the key resistance at 1.6200.