U.S. Dollar Made a Weak Start

The U.S. dollar declined along with Treasury yields which is why the greenback’s counterparts traded higher on Monday.

Buyers in the GBP/USD were able to take a good profit with the cable trying to stabilize above 1.39. This morning we see the pair struggling to hold above 1.39 and we expect more of the recent sideways fluctuations ahead of Thursday’s risk events. In near-term time frames we expect the cable to trade within a price range between 1.3950 and 1.3780.

The EUR/USD traded higher on the back of a weakening dollar but gains were limited until 1.2076. We will focus on a trading range between 1.2130 and 1.1960.

DAX: There is nothing new to report with the index continuing its recent sideways trend between 15360 and 15070. Breakouts above 15400 or below 15000 could lead to a shift in sentiment.