The tensions dominating market since the release of downbeat data from major econmeis sparked demand in safe haven currencies led by the yen, franc and dollar.
Last week ended with worries as the U.S. non-farm payrolls report showed that the world's largest economy did not add any jobs in August while July's reading was downwardly revised to 85 thousands from 117 thousands, causing markets to open today on a gap.
The euro led the decline, plummeting to three-week low versus the dollar, as it fell after the defeat of Merkel's party in elections and after the release of lackluster euro zone services reports which added to worries that recovery in the 17-nation region is losing momentum.
The German Chancellor Angela Merkel's party was defeated in elections which raised speculations that bailouts for the region's highly indebted nations are at risk.
On the other hand, European services expansion eased to 51.1 in August from 51.6 in July, following the contraction of manufacturing to 49.7 from the prior expansion of 50.4.
Concerning the EUR/CHF pair, it slipped on the daily basis to trade around 1.1110, where it recorded a high of 1.1199 a low of 1.1079.
Moreover, the dollar index, which tracks the dollar movements versus a basket of major currencies, inched up to high of 75.06 compared with the day's opening level of 74.97 amid the celebration of the U.S. with the Labor Day Holiday.
Tomorrow, U.S. ISM non-manufacturing is expected to show a cool down in expansion to 51.0 in August from 52.7 a month earlier.
On the other hand, the yen showed incline against the dollar the USD/JPY pair dropped on the daily charts to trade around 76.80 after recording a high of 76.95 and a low of 76.67.
The trading range for today is among key support at 75.25 and key resistance now at 78.45.
Moving to the British pound versus dollar, it dropped on the daily basis to trade around 1.6133 after the breach of support at 1.6150.
The pound was pushed down further after the release of data showing that services gauge missed both prior and expected readings of 55.4 and 54.0 as it came out at 51.1.
So far, the pair has recorded a high of 1.6184 and a low of 1.6092, while The trading range for today is among key support at 1.5935 and key resistance at 1.6365.