The dollar advanced the most against the euro since August 2004 after the biggest increase in consumer inflation in two years prompted traders to pare expectations for interest-rate reductions. The dollar was helped this week by a coordinated plan led by the Fed to alleviate the credit crunch and the U.S. central bank's third cut in interest rates this year to avert a recession in the world's largest economy.

TECHNICAL OUTLOOK – DAILY CHARTS

EURUSD
Resistance:1.4750
Support:1.3990
Sentiment:BEARISH

GBPUSD
Resistance:2.0450
Support:2.0000
Sentiment:To Bearish

USDJPY
Resistance:114.90
Support:110.50
Sentiment:Bullish

USDCHF
Resistance:1.1735
Support:1.1160
Sentiment:Bullish

USDCAD
Resistance:1.0340
Support:0.9975
Sentiment:Still Bullish

AUDUSD
Resistance:0.8900
Support:0.8335
Sentiment:BEARISH

GBPJPY
Resistance:233.70
Support:224.80
Sentiment:Mildly Bullish

The dollar gained against 14 of the 16 most-actively traded currencies as futures show the probability of a Federal Reserve rate cut in January declined from 100 percent.

U.S. consumer prices increased 0.8 percent last month after a 0.3 percent gain in October. The median forecast in a Bloomberg News survey was 0.6 percent. Producer prices rose the fastest in 34 years last month, data showed yesterday.