Another week has started with the dollar still on the weak side after last week very bad economic data which boosted further speculation that the US economy is heading for a recession which increases the expectation of a further cut in interest rates by the Feds in the next meeting.

Meanwhile, the euro was propelled by higher than expected PMI data coming in last Friday and with the combination of weak US data and good European data, the ECB won't be in a hurry to take action anytime soon. Today the calendar is free of European fundamentals but due to carry trades, the euro inclined dragging the pair with it to record a high of 1.4845 and a low of 1.4794.

The royal pound got lucky today as carry trades dominated the market pushing the pound to cover the losses it occurred before. As for this hour the pair is on the upside to fetch a high of 1.9700 and a low of 1.9616. However, according to reports released, data indicate that house prices fell which still keeps the UK under observation and thus the economy's currency.

Meanwhile, the Japanese yen declined against the dollar today as stock gains strengthened carry trade pushing the pair to the upside to record at this hour a high of 107.98 and a low of 107.24. In carry trades, investors get funds from a country like Japan with low borrowing costs and invest in one with higher interest rates, earning the spread between the two.