The rise in the dollar came after weak results

A packed economic calendar pushed volatility up a level on Wednesday, allowing the dollar to regain up to 350 pips on certain currency pairs. The rise in the dollar came after weak results were published in England and Europe, lowering trader’s confidence regarding the strength of the Pound and the Euro. In addition U.S worker productivity roared ahead at its fastest pace in four years, while wage pressures dropped sharply (Private-sector jobs up 189,000). The data only contributed to the dollars intraday strength giving “dollar bulls” a sigh of relief. The futures market was overwhelmed by the news sending futures up 1% before equity trading hours. Despite the good news traders are still remaining apprehensive towards the next couple of days as two rate decisions and employment data in the U.S are yet to be published (this was reflected in certain currency pair prices towards the end of the U.S equity session). Due to recent turmoil in the credit markets traders will be focusing on the upcoming interest rate decisions, to see if any additional monetary actions will be taken to stimulate the economies. Up until the decisions, traders will be scrutinizing currency reactions trying to figure out the outcomes, especially as OPEC has just notified that production will remain unchanged supporting crude oil prices around $90 per barrel- a price that is currently a burden on consumers due to inflation. 
 

Euro | Japanese Yen | British Pound | Swiss Franc 

 
Euro
 
After opening the session in Asia at $1.4764 the Euro gave up its strength throughout all of the session ending at $1.4611. The intraday downtrend was caused by weak data and profit taking before today’s important interest rate decision. Even though traders are anticipating a “no change” result, trader’s eyes will focus on the speech that accompanies the decision, later on throughout the day. 

Support: 1.4550, 1.4520, 1.4440 
Resistance: 1.4620, 1.4670, 1.4770 
 
Euro | Japanese Yen | British Pound | Swiss Franc 

Japanese Yen

Unlike normal trading sessions the Japanese Yen was mostly over looked due to all the mayhem in other currency pairs. This pair remains trading at its recent levels with resistance levels at ¥111.27 and minor support levels at ¥109.46  

Support: 109.70, 109.50, 109.00 
Resistance: 111.20, 111.75, 113.00 

Euro | Japanese Yen | British Pound | Swiss Franc 

 
British Pound
 
After trading flat during the first few hours of the session, the pound plummeted giving up 200 pips in just under an hour. The spark was caused by weak data along with a change in views by analysts at Barclays Capital and Lloyds TSB group Plc, both mentioning that a rate cut could be realized sooner than expected. This currency pair ended the session down at $2.0263, trading steady throughout the night, as traders are waiting for today’s interest rate decision in the U.K.  

Support: 2.0200, 2.0070, 1.9900 
Resistance: 2.0310, 2.0400, 2.0550 

Euro | Japanese Yen | British Pound | Swiss Franc 

 
Swiss Franc

Support: 1.1260, 1.1220, 1.1160 
Resistance: 1.1330, 1.1400, 1.1460