FXstreet.com (Barcelona) - The dollar begin the week losing ground against most rivals, except by Japanese Yen, after the U.S. Treasury gave further details of its plans to stabilize the financial system. Wall Street surged Monday, after Treasury's plan to buy up billions in bad bank assets and a better than expected existing home sales report that rose hopes that the economy is stabilizing. Those were the key factors that kept investors buying higher yielding such as Euro, and Gbp; commodity currencies such as Australian and Canadian dollars have been the day over all winners, as gold reaches and intraday high of 596.00 and oil remains well bid above $ 53.00 a barrel.
Forex market remains stock sensitive and keeps ignoring fundamental data from each particular economy, thus this could change Tuesday as a battery of macroeconomic data is expected in Europe and England.
Japanese yen is has been sold off, after Japan Finance Minister Yosano urged a new fiscal stimulus of more than $200b to revive the economy of Japan. The BOJ released minutes for last week's meeting. The central bank increased purchase of long term JGB up to 21.6trillion yen from 16.8 trillion yen in order to revive their economy. Besides, Japanese Yen tends to seasonally depreciate by the end of March, fiscal year close in Japan.