The USD fell after the G7 finance chiefs did not call for measures to counter the U.S. currency's weakness.

  • In The Group of Seven finance chiefs meeting in Istanbul over the weekend stopped short from criticizing the U.S. dollar's 14% decline against a basket of currencies since March.  In the end the G7 merely repeated the language used at the two previous meetings in April and February.
  • Given the big rhetoric from various officials leading up to the meeting on their currencies' strength against and the negative impact on the economic recovery, the relatively weak statement gives more room for further dollar weakness in the short-term.
  • The greenback fell against most of its major counterparts on speculation Federal Reserve officials this week will reiterate interest rates will be kept at record low for an extended period of time.  The Japanese yen pared earlier gains against the dollar as the nation's Finance Minister, Hirohisa Fujii, gave his clearest warning to date on Japan's openness to intervene in the currency market.
  • The benchmark interest rate is as low as zero to 0.25% in the U.S. and 0.1% in Japan, compared with 3% in Australia and 2.5% in New Zealand, attracting investors to the South Pacific nations' assets.  The AUDUSD rallied over 150 pips from Friday's lows and now trading just below 0.8750-mark.
  • The Labor Department reported employers cut 263,000 jobs in September, taking the market by surprise, after a revised August decline of 201,000.  The unemployment rate increased to 9.8% from 9.7%.
  • Crude oil remains under pressure below $70 as recovery worries linger on the back of Friday's NFP data.  Gold price edges a little higher, trading above 1000, following a rebound in the U.S. session on Friday.

Currency to watch out for: EURUSD & GBPUSD

  • The EURUSD pivot point is at 1.4565 with a preference to enter into long positions at 1.4575
  • The GBPUSD pivot point is at 1.5910 with a preference to enter into long positions at 1.5920

Today's calendar and market movers:

  • UK Services PMI expected to rise to 54.50
  • EU Retails Sales month on month expected to drop to -0.5%
  • US ISM Non-Manufacturing PMI expected to rise to 50.0

Stocks:

  • US stocks closed lower on Friday, the Dow -0.23%, the S&P at 0% change, and the NASDAQ -0.46%.
  • As of 06:15 GMT the Nikkei is trading at -0.6% and the Hang Seng at -0.17%