Investors are watching closely the release of the economic data in the US this week as well as fresh developments in the credit market with worries over the health of the economy and the credit crisis continuing eat on trading sentiment.

The dollar fell against the Euro with investors cautious about the US currency and its outlook before the Feds meeting tomorrow at which the central bank is expected to cut rates again, dragging the pair with it to the downside to record a low of 1.4659 after recording a high of 1.4702

The GBP started to drop against the US dollar at the beginning of the early secession as unwinding of carry trades is dominating the market where investors sold high yielding currencies to buy low-yielding currencies such as the yen. As for the now, the GBP is gradually inclining, pushing the pair to the upside to record a high of 1.9866 and a low of 1.9730.

The yen rallied greatly against the US dollar as a drop in regional stock markets heightened risk aversion and crimped demand for high-yielding currencies and assets pushing the USD/JPY pair to the downside to record a low of 106.00 after recording a high of 106.96