The European session was rather again quiet with the start of a new week, as the major concern is on the American session and the housing data as fears of recession are growing firmer into reality as the housing market gives no sign of bottoming with the beginning of 2008.

Majors lacked strong momentum to breakthrough major resistance levels weakening against the dollar providing it with a slighter edge; yet overall trading were confined in narrow ranges this session. The euro was not able to breach the upper resistance level at 1.4830s retreating back from its early highs yet again was held by the strong by the support and maintained trading within 1.48s as it set the low at 1.4794 and couldn't continue the bearish wave lower. The pair now is consolidating well around 1.4820s to acquire strong momentum to leap forward and attempt the 1.4880s.

The pound was trading in downside headings as it reached as low as 1.9614 supported also by reported weak housing data and falling prices; the pound is trading now higher near 1.9630s leaving its intraday high at the opening hour of 1.9686.

The yen on the other hand is strongly weakening against the dollar especially with the rebound in the Asian and European stocks which provides support to risk appetite which inversely is tied to the Japanese currency. The USD/JPY couldn't penetrate lower than 107.20s rebounding as the dollar strengthened against the yen to take the pair to trade at its highs now set at 107.97.