FXstreet.com (Barcelona) - U.S. stock markets have followed Asia and Europe and have opened the week with losses, on concerns about the delicate health of the global financial system, while the manufacturing sector's activity continued contracting and construction spending hit a 5-year low.
Wall Street has opened the week with loses between 1.44% on the Nasdaq and 2.04% on the S&P index in the first hour of trading, while The ISM Manufacturing showed further contraction of the sector's activity, and the Construction spending fell to its lowest level since 2004.
USD/JPY higher, Euro steady and Pound suffering to stay above 5-week low
USD/JPY has been one of the movers of Monday's U.S session, the Dollar has bounced up on 97.00 support line to gain about 70 pips so far reaching levels around 97.70. The pair has broken through the bearish trendline off 98.72 (26 Feb High.), and at the moment USD advances towards 98.00 resistance level. If the pair remains above there, a fresh assault to 98.72 is likely.
EUR/USD has remained trading in a range between 1.2550 and 1.2610/20 area, despite a small rally after the release if U.S. ISM Index the Euro has been unable to break resistance at 1.2610 and returned to the middle of the range.
GBP/USD is trying to hold above 1.4030 support level, 5-week low reached on its drop from daily high at 1.4291 in early European session. The pair is on a bearish consolidation and 1.4030 level could give way, in which case, next support level could be at the 1.3910/25 area. Swinging lower than this, the pair could reach as low as 1.3915 and below there 1.3820.
USD/CAD has continued climbing, it has broken 1.2770 resistance level (Jan 21 high) and the pair advances towards 1.3015 resistrance level (Oct 27 high).