FXstreet.com (Barcelona) - Asian Sunday opening continues favoring dollar against mayor rivals, as risk aversion remains ruling market. Furthermore, March has finally arrived. Remember ECB pointed next important meeting will take place precisely this month. Economic conditions have worsened in the euro zone, with consumer confidence at significant lows, and unemployment edging higher month after month. Markey will probably begin the week pricing in next Thursday rate cut of 0.5 basis point.
In England things are quite the same, after the awful GDP readings posted past week, and market is also expecting a new rate cut of another 0.5 basis points, that will bring rates to 0.50%, a new historical low. However, England is expected to use another tools such as quantitative easing, to encourage the economy.
Both majors are expected to suffer downside pressure this week, and remain trading with wide volatile movements.
EUR /USD - Over sold in smaller charts, the pair is very close to the 1.2555 level, first support for today, followed by the weekly low at 1.2513. Break under this last, could take the pair first to.1.2468 and 1.2423. Above 1.2585 could regain the 1.2620 zone, and above 1.2660.
GBP/USD - Nice fall in the pair that is just quoting above the 1.4200 that should hold for now. Break under will find next supports at 1.4140, followed by 1.4090.With a gap at the opening, upside corrections will find resistances at 1.4260, 1.4286 and 1.4315.
USD/JPY - The pair has finally halted the straight rally in the 98.75 zone, and began the so awaited correction market needed. Quoting under the 97.60 zone, the pair will find supports at 97.16, followed by 96.45, 96.00 and 95.70. Above the mentioned 97.60 zone, consider resistances at 97.92, 98.21 and the 98.73 maximum.