Tensions are dominating the market since the release of downbeat data from major economies, which sparked demand for safe haven currencies led by the yen, franc and dollar.
Last week ended with worries as the U.S. non-farm payrolls 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, leading the markets to open today's trading on a gap.
The euro led the decline, plummeting to three-week low versus the dollar, as the pair fell after the defeat of Merkel's party in elections and after the release of lackluster euro zone services PMI, 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 the manufacturing sector to 49.7 from the prior expansion of 50.4.
Concerning EUR/CHF, the pair slipped over daily basis to trade around 1.1110, after recording a high of 1.1199 a low of 1.1079.
Moreover, the dollar index, which tracks the dollar's movement versus a basket of major currencies, inched up to a high of 75.06 compared with the day's opening at 74.97 amid the absence of U.S. and Canada for 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 inclined against the dollar, where USD/JPY pair dropped over daily basis 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, the pair dropped over daily basis to trade around 1.6133 after abreach of the support at 1.6150 was seen.
The pound was pressured down further, after the release of data that showed services gauge missed both prior and expected readings of 55.4 and 54.0 and 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.