Depreciating to an eight-month low against the euro, the dollar ascended and the yen gained against most of its major counterparts on speculations that the Fed will gradually intervene in markets.
The Yen ascended against majors as doubts of a second round of intervention in FX markets by the Japanese government to depreciate its currency. G-20 summit would probably discuss a major issue which was the dominant matter in the G-7 meeting earlier this month; the currency war in FX markets.
The Euro depreciated against the dollar after ECB president remarks on the current monetary policy stance, where he rejected Bundesbank president Alex Weber calls for withdrawing stimuli programs from the market.
The US dollar index, a six-currency gauge for the dollar, appreciated on the daily scale to trade at 77.42, compared with the opening levels of 77.36, where it reached the highest at 77.64 and the lowest at 77.24.
The euro-dollar pair extended Friday’s losses and fell to trade at 1.3896, compared with the opening levels of 1.3989.
A daily closing above or below 1.3915 would clear the general trend for this week, but the pair is currently targeting a strong support levels at 1.3890 which if breached, would cause the pair to decline further to 1.3770.
Further stimulus money to be pumped by the BOE caused the cable to depreciate, where the GBP/USD retreated to trade at 1.5900, compared with the opening levels of 1.5974.
A bullish trend is forecasted during this week, targeting 1.6200 levels that requires a clear breach of 1.5820 levels in order for the pair to achieve the suggested targets.
The dollar-yen pair extended its drop where it’s currently trading at 81.27, compared with the opening levels of 81.37.
The trading range for today are set among the support at 81.00 and the resistance at 81.55. the suggested scenario for this week is bearish, targeting 79.85 and 78.50 but trading must remain below 82.45.