The GBP started the week around 1.4200 while Euro opened under 1.2800, after a G7 statement in line with expectations (very similar to previous meeting), that shown no specific commitment with currencies intervention. The official statement was focused on the stabilization of the global economy and financial markets remains our highest priority and committed to avoiding protectionist measures, which risks exacerbating the downturn.
In this environment even Japanese Yen is falling against greenback, and majors seem ready to continue down despite the gaps opening left. The EUR/USD has a key support zone around 1.2710 while GBP/USD around 1.4330/40: movements under those levels could trigger more bearish momentum in both currencies. Japanese Yen against dollar remains close to the 92.00 level also a daily descendant trend line: above it target zone will be 94.60.
Asian stocks reaction will be deceive: lack of confidence and falls there, will continue supporting dollar for the rest of the day.