Pound and euro advance

The pound and euro gained today in a day that includes the release of
inflation data from major economies.
All inflation data has shown acceleration in prices in December;
German annual CPI remained at 1.7%, Swiss import and producer prices
inclined to 0.3% from 0.1%, UK PPI output rose to 4.2% annually from
3.9%, euro zone CPI rose to 2.2% from 1.9%, and finally US CPI is due
later in the day.

Yesterday, Both BoE and ECB left interest rate and stimulus plans
unchanged in January, yet Trichet noted that inflation which was
triggered by the rise in commodity prices, especially oil, will
continue to rise on the short term and the ECB may intervene through
raising interest rate if needed.

On the other hand, the dollar index, which tracks the dollar movements
versus a basket of major currencies, is now traded near the day's
opening level at 79.15 after falling to a low of 78.80 and touching a
high of 79.30, ahead of the release of a parade of important US data.
Concerning the euro-dollar pair, it is showing slight incline on the
daily and 4-hour charts but it pared its earlier advance to retreat to
1.3375 from a high of 1.3475 while the lowest point was recorded at
1.3320, where it is meanwhile doing attempts to remain above 1.3370.
The trading range for today is among the key support at 1.3065 and the
key resistance at 1.3325.

Moving to the royal pair, it inclined on the daily charts, but stopped
its rise as it became close to strong resistance at 1.5875 which
pushed the pair down to trade at 1.5842.

So far, the pair has recorded a high of 1.5865 and a low of 1.5808,
whereas the trading range for today is among the key support at 1.5700
and the key resistance at 1.6060.

With regard to the dollar-yen pair, it is now trading close to the
day's opening at 82.80 after falling earlier today to record a low of
82.39 before it rebounded to touch a high of 82.93, while the trading
range for today is among the key support at 81.05 and the key
resistance at 83.70.
Source: Fxstreet.com