Persistent concerns in markets gave advance to safe-haven currencies such as yen and franc to advance against majors in the absence of important data from the US after hectic last week.
Stocks dropped after China said it will put stricter regulations on capital inflows as it mentioned it will curb the flow of “hot money” into its economy.
Other worries came from Europe before Portugal announces the sell of 10-year bonds worth 10 billion euros tomorrow, while Ireland's new budget plan last week to raise as much as 6 billion euros by 2011 is raising concern that the country that has huge budget deficit may need a Greek-style rescue.
In general, there is jittery situation after the Fed's announcement of $600 billion stimulus last week which exceeded expectations of $500 billion and was prone to criticism from many world leaders before the G20 meeting this weekend.
German Finance Minister Wolfgang Schaeuble described U.S. decision as "clueless" since it may weaken the dollar and raise commodity prices, while China said it may cause asset bubbles.
Gold spiked to a new high today at $1422.29 an ounce as worries enhanced demand on the metal as a refuge.
The dollar index, which tracks the dollar movements versus a basket of major currencies, pared its earlier advance as it fell from a high of 77.37 where it found solid resistance that pushed it down to 76.95 while the day's low was at 76.83.
Concerning the euro-dollar pair, it is currently trading near the day's opening at 1.3912 after the pair had rebounded from a low of 1.3821to touch a high of 1.3939, yet 1.3890 remains a crucial level while The trading range for today is among the key support at 1.3790 and the key resistance at 1.4000.
Moving to the royal pair, it trailed the euro as it also fell on the daily basis from the day's low at 1.6004 to 1.6153 as it found strong support at 1.60 level, while the highest point was reached at 1.6163.
Today's data showed that visible trade deficit widened in September while manufacturing and industrial production dropped in the same month, yet tomorrow eyes will be on BoE's quarterly inflation report which will include the latest growth and inflation forecasts.
The trading range for today is among the key support at 1.6000 and the key resistance at 1.6270.
With regard to the dollar-yen pair, it witnessed the second daily decline to reach a low of 80.64 after last week's attempts from the dollar to rebound variously against the yen following the historic drop to 15-year low.
Currently, the pair is trading at 80.65, while the trading range for today is among the key support at 79.20 and the key resistance at 81.80.