The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank today announced they will extend their liquidity-providing facilities and operations through January 2010. The common currency was partially dragged lower by comments from Bank of England Governor King who said the weaker sterling has been “helpful” in reducing economic and financial imbalances.

In U.S. news, data released in the U.S. today saw August existing home sales off 2.7% to an annualized 5.10 million rate. Weekly initial jobless claims fell to 530,000 from a revised 551,000 while continuing claims fell to 6.138 million from a revised 6.261 million.

As a result, the euro-dollar is plummeting and is forecasted to slip further to the downside according to the four-hour scale being pulled by the strengthened dollar, having the Union currency trading so far at 1.4638 recording a high 1.4801 and a low of 1.4632 with a resistance at 1.4699 and a support at 1.4581.

As for the pound-dollar, it fell deeply as well as the euro-dollar pair, whereas the dollar is gaining noticeably against the royal pound that is so far trading around 1.6032 recording a high 1.6386 and a low of 1.6022 with a resistance at 1.6129 and a support at 1.6003, still the pair’s decline is expected to shrink.

Now, turning to the dollar-yen pair, it is climbing to the upside as the dollar is advancing drastically against the low-yielding yen, whereas the pair is so far trading around 91.51 recording a high of 91.62 and a low of 90.33 along with a resistance witnessed at 91.85 and a support detected at 91.17.

Data released in the Euro zone today saw the French number of unemployed rise 0.7% m/m to 2.553 million. Also, the German Ifo business confidence index rose to 91.3 in September from 90.5 in August, the sixth consecutive improvement but below expectations. The German economy, however, could suffer from political uncertainty, difficult credit conditions, and a weakening labour market. The ECB’s September monthly bulletin reported the EMU-16 economy is stabilizing.