The New Zealand dollar extended the rally from earlier this week and is the best performing currency against the greenback on Wednesday, while the Japanese Yen weakened across the board and retraced the two-day rally against the U.S. dollar.

 The Euro tipped lower against the greenback on Wednesday, with the exchange rate slipping to a low of 1.3545 during the overnight trade, and the single-currency is likely to maintain the narrow range carried over from the previous week as policy makers in Europe aim to support the economies operating under the fixed-exchange rate system.

The New Zealand dollar rallied for the second-day to reach a high of 0.7036 against the greenback, while the Japanese Yen weakened against most of its major counterparts as investors increased their appetite for risk.

The Canadian dollar remains the best performing currency against the greenback on Thursday following the four-day rally, while the New Zealand extended the decline from earlier this week and continued to underperform amongst the major currencies.

Hi everyone and welcome back! Quiet Asian session as majors mostly consolidatewith greenback a bit stronger ahead of BOE and ECB decisions in a couple of hours. Gold gave up a bit, still strong around $ 1138/oz, limiting any dollar attempt to move further. Anyway, what will happen is way more interesting that what already did; BOE I do believe, could trigger some strong reaction if they decide to announce more QE to come, sending Pound lower while any other scenario should be bullish for the currency; regarding Euro, things will depend on Trichets’ comments  on how concern the EU is about deficits in the zone, and stance on QE. Anyway, I will post the technical levels to watch for both today in a few minutes. Here is the link for today’s calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!