No Fundamentals!

The US dollar is deteriorating as the Bank of America Corp. the second-largest US bank said earnings fell by 77% which is the third straight quarterly decline as the company is keeping in hand $6.01 billion worth of write downs which worsened the market sentiment. Today, there were no major fundamental data being released by any of the economies as only technical movements moved the markets.

As for the euro was under going a correction wave Friday, today we see the euro back to its normal levels around 1.59 trying to build base above this level hoping the EU economy to support it with strong fundamentals so it can breach the1.60 which will be the new physiological barrier for the single currency. The EUR/USD is traded now around 1.5920 while recording a high of 1.5947 and a low of 1.5794 so far.

In the US session we are noticing that the British pound is starting to gain grounds as the BoE announced measures to exchange government bonds for mortgage securities worth 50 billion pounds just to stimulate the lending between British banks, the period for this plan is just one year, but it might be renewed to the upcoming three years. As this news came out, the royal currency fell as result of unclear situation. As the sterling lost momentum it could not breach the level support of 1.9825 as it started gaining again. The GBP/USD is trading around 1.9857 while recording a high of 2.0027 and a low of 1.9810.

The yen is gradually gaining against the greenback dragging USD/JPY pair to the 103.30s after recording a high of 104.06 and a low of 102.98 as the Japanese outlook remains mixed.