The US Dollar was weaker in yesterday's trading, which was absent of any major data releases. Therefore, traders were working off of negative market sentiment that carried over from last Friday's trading session in which U.S. Non-Farm Payrolls failed to meet market expectations, combined with fiscal fears about Hungary.
The EUR/USD finished the day higher despite a trading day that was influenced by reduced risk taking. Global equities were lower across the board with the DAX down 0.57% and the S&P 500 lower by 1.35%. Most of the gains in the EUR/USD can be contributed to profit taking from Friday's trading session, which saw the pair plummet below the significant psychological support level of 1.2000.
Major USD pairs and crosses were lower for the day, with the EUR/USD ending trading at 1.1945 from an opening day price of 1.1895. The GBP/USD was higher at 1.4485 after opening at 1.4428, while the USD/CHF was lower at 1.1620 from 1.1658.
Today will be another trading day void of any major economic data releases. As such, traders will want to move in line with the previous momentum that was seen prior to the New York close. The greenback pared its losses as the Dow Jones Industrials sold off, indicating that the bearish economic sentiment remains. Sovereign debt issues remain a concern and should be on the forefront for today's trading sessions as risk sentiment is low. The EUR/USD could continue to head lower towards the next support level at 1.1830.