Moody's Investors Services downgraded Friday Ireland's credit rating by five levels, along with shifting the country's outlook to negative, while placing Greece's credit rating under review for possible downgrade.
The dollar gained Friday, but with the start of this week, the single currency fell against majors despite the rise against the Euro.
Speculations that European countries will fail to raise enough capital to encounter the rise in budget deficit became harder after credit rating agencies downgraded the credit rating for the region. Standard & Poor's placed Belgium on negative watch last week.
The US dollar index, which tracks the performance of the dollar against six-major currencies, fell on the daily scale to a low of 80.32, while setting a high of 80.63 before trading lower at 80.46 from the opening levels at 80.48.
Sentiments regarding the Euro are still bearish, the pair has been narrow trading over the past few trading session, while today a drop is recorded on the daily scale to 1.3136, nearing the support at 1.3120.
The pair reached the highest at 1.3187 and the lowest at 1.3123, compared with the opening levels of 1.3183.
The expected trend for this week remains bearish, The positivity appearing on momentum indicators could cause some fluctuation before heading towards resuming targets that start at 1.2850, keeping in mind the pair returning above 1.3265 will pave the way to revisit the ascend once again.
The Pound rose against the dollar, retesting the resistance at 1.5552. the pair opened trading at 1.5514 while setting a high of 1.5565 and a low of 1.5474 before trading at 1.5535 levels.
The week's trading trend signals a bearish pattern with targets at 1.5315. Note that the daily closingabove 1.5535could postpone resuming this suggestedbearish trend and helping it to return to the bullish direction.
As for the Yen, the pair traded lower at 83.79, while setting a high of 84.11 and a low of 83.73, compared with the opening levels of 83.93.
The pair has not witnessed any major changes in recent trading, where it continues fluctuating around SMA 50 within the upside channel organizing the rise over an intraday basis. Attempts of breaching pivotal resistance 84.25 are continuing, where momentum indicators are presently neutral. We may witness fluctuations until positive momentum supports the breach of the mentioned resistance level, and then resume the expected bullish direction this weekstarting initial targets around 85.95. Note that breaching 83.30 and building a base below it could postpone achieving this scenario.