Fears and worries spreading in markets over the past few weeks, after the downgrade of U.S. sovereign rating, eased on better-than estimated Japanese growth report which sapped demand on low-yielding currencies.

The Japanese economy shrank 1.3% on annual basis, lower than forecasts of 2.5% contraction.

Leading the decline, the Swiss franc continued its drop against majors, after opening on a gap, on talks between the Swiss National Bank and the government to put a target for the franc to halt its appreciation which affected Swiss exporters.

Last week, SNB Vice President Thomas Jordan said that there are talks about pegging the franc as the bank face mounting difficulties to halt the franc's appreciation which poses a threat to the development of the economy in Switzerland and has further increased the downside risks to price stability, according to the SNB.

The bank cut interest rate and announced other measures to curb the franc's advance and seem to continue on this track till shoring the franc to desired levels.

Concerning the EUR/CHF pair, it rebounded for the third day to trade around 1.1265, where it recorded a high of 1.1457 a low of 1.1148.

Moreover, the yen also lost ground against majors while the dollar remained weak against a basket of major currencies.

Concerning the USD/JPY pair, it continued its plunge to trade at 76.78 after touching a high of 77.09 and a low of 76.76.

The trading range for this week is among key support at 74.25 and key resistance now at 80.95.

Moving to the British pound, it advanced for the third day against the dollar where the pair rose to 1.6298, yet worries remain predominant after the BoE has indicated in their quarterly inflation report released last week that growth outlook is weaker and inflation will decline below target in the medium term.

So far, the pair has recorded a high of 1.6326 while the lowest level was depicted at 1.6253, whereas the trading range for this week is among key support at 1.5875 and key resistance at 1.6745.