The US Dollar appears to be climbing against its primary rivals as the world prepared for the opening of the American markets at 13:00 GMT. With a heavy news week ahead of us, forex market participants can try to anticipate heavy price swings among the major currencies throughout the days ahead.
The EUR/USD pair has fallen from 1.3604 at market opening down towards the current price of 1.3530. The GBP/USD saw similar results with a serious drop of 260 pips, and currently trades at the 1.4900 price level.
These poor results for the European currencies do not appear to mirror the fundamental news from the region. British private lending has risen over the past month and the manufacturing PMI held steady despite an expected decrease. In Europe, the Euro-Zone's regional unemployment rate decreased to 9.9% and German import prices are on the rise, suggesting a minor recovery is underway. It appears the sovereign debt concerns in Greece and other countries are continuing to put selling pressure on the EUR.
With interest rate decisions and major employment reports expected this week, many of the current trends may face a reversal if the numbers come out differently. However, should these figures prove bullish for the USD, these trends will likely continue and the greenback could gain significant strength against its rivals going into the second week of March.