The Dollar gained versus all majors despite weakening on Friday. The Dollar's rally was due to risk aversion as Greece crisis has begun spreading, reaching Portugal. NASDAQ and Dow Jones gained by 0.9% and 1% respectively. Crude Oil weakened by 1% closing at 80$ a barrel and Gold (XAU) weakened by -0.3% closing at 1,104.2$. Looking ahead, Consumer Confidence is expected stronger on Tuesday. ADP Non-Farm Employment Change is expected stronger and will be the preliminary data for Friday's Non Farm Payrolls data. Weekly Unemployment Claims and ISM Manufacturing PMI will be released on Thursday. Main focus will be on Friday's Payrolls data which is expected to show the American economy added 179K jobs in March.
The Euro fell by -0.9% versus the Dollar the past week after Portugal's rating was cut by Fitch Rating, and more countries are standing before a possible rate cut. Spain and Italy are possibly the next countries to be downgraded. EU Summit on Friday determined Greece's aid will come from both the IMF and the EU, lowering the uncertainty. Overall, EUR/USD traded with a high of 1.3569 and a low of 1.3267. EUR/USD broke below its weekly price channel and made new 10 month lows below 1.33. Looking Ahead, German Prelim CPI will be released on Monday. CPI Flash Estimate and Unemployment Rate will be released on Wednesday. German Retail Sales will be released on Thursday. .
The Pound declined by -0.8% versus the Dollar as uncertainty ruled the markets. Portugal's rating was cut by Fitch Rating and worries exist the U.K solid triple A rating could be cut as well, due to its large deficit. CPI was released lower than expected with 3% and GDP estimate for 2011 was lowered to 3-3.5%. Overall, GBP/USD traded with a high of 1.5112 and a low of 1.4799. GBP/USD is near weekly oversold conditions and near its lowest rate in 8 months. The major trend is downwards but a retracement due to oversold conditions may occur. Looking Ahead, Net Lending to Individuals will be released on Monday. Nationwide HPI and Current Account along with Final GDP will be released on Tuesday. Halifax HPI and Manufacturing PMI will be released on Thursday.