FXstreet.com (Córdoba) - U.S. and European markets started the week in the negative side. The Dow Jones fell 1.05% to 9,868 (one-week low) breaking an important support zone at 9,915. The Nasdaq lost 0.59%. Markets is Europe fell at a moderate pace, 1.00% on average. In Asia, stocks finished mix. Commodities also fell as gold ended at $1,043 a/oz and crude oil tumbled 2.30% to $78 a barrel.
Dollar rose sharply across the board as the inverse correlation with stocks continues at high levels. EUR/USD tumbled to 1.4840 (one-week low) after posting a fresh 14-month high during the Asian session. The Euro also fell against the Yen and Cable. The Sterling managed to rise to the Yen, after GBP/JPY found support at 149.00.
Against the Dollar, the Pound rallied during the Asian and European session rising from 1.6225 (intra-day low) to 1.6390 (intra-day high). But after the opening bell at Wall Street, Greenback got stronger and the pair tumbled to 1.6280 erasing most of the gains. Cable managed to get back above 1.6300 but far from the highs.
USD/JPY finished only a few pips above the opening price but posted the fourth consecutive gain in a row. Dollar needs to break above 92.25 to regain the upside. If the pair fails to do so, the Yen could gain momentum.
Currencies tied to commodities continues it decline from 15-month high reached last week. AUD/USD slide for the third consecutive day and fell to 0.9120, posting a one-week low. NZD/USD tumbled a hundred pips from 0.7550 to 0.7450 (intra-day low).
The Forex.com Research Desk affirms: The upcoming Asia session is also light on economic news and only the New Zealand business confidence indicator is noteworthy. Improvement from the -4 read the prior month should see Kiwi grind a touch higher near-term. For now, the pair remains under heavy pressure while below the 200-hour sma near 0.7500 while important support rests down by the 0.7435 area.