EUR - Continues its bearish trend Followed by a brief upward correction during overnight trading yesterday, the euro once again turned bearish with the growing concerns regarding Spanish debt, which weighed down on the common currency. The EUR/GBP, which had reached as high as 0.8035 during early morning trading, turned bearish during the day and eventually dropped as low as 0.7987. Against the Canadian dollar, the euro opened the week by gaining nearly 50 pips during the Asian session. The common currency was not able to hold onto its gains, and proceeded to trip-up some 70 pips during European trading. In today's trading session, euro traders were keener to note the developments that come out of both Greece and Spain regarding their respective political and economic crisis. Any additional negative developments are likely to increase the concern and may further weigh down on the euro and could even bring it within reach of its recent two-year low against the dollar. Later in the week, traders will monitor the results of the Italian 10-y Bond Auction. Any indications that the euro-zone debt crisis is spreading to countries like Italy may result in further losses for the euro. USD - A leap in consumer confidence increases volatility The US dollar experienced losses against its main currency counterparts during trading yesterday, whereas mild positive Greek news has led to risk taking in the marketplace. The EUR/USD started the week on a bullish note and has gained over 100 pips during overnight trading, reaching to a high of 1.2623. However, the pair was not able to maintain its upward trend, and by the end of mid-day session it was trading around the 1.2530 level. Against the British pound, the dollar was down by almost 60 pips during overnight trading and reached a high of 1.5715 before staging a slight downward and stabilizing at 1.5693. Today, traders have paid more attention to the CB Consumer Confidence figure with the fact that analysts predicted that if figures are slightly above last month's figures, the dollar will be able to recover some of its yesterday's losses. Additionally, traders need to take note that this entire week is packed with significant US news, such as Friday's all-important Non-Farm Payrolls figure. Any positive developments in the US economy could surely lead to prolonged dollar gains. JPY gives traders an opportunity to wait and see As the Williams Percent Range on the weekly chart is in oversold territory, most other long term technical indicators show this pair range trading. Traders may want to take a wait and see approach, as a clearer picture is likely to occur and present itself in the near future. Crude Oil - Risk leads gains Crude oil started the week on a bullish note as risk taking in the marketplace led to gains for commodities and higher-yielding currencies. In addition, indecisive talks between Iran and the West last week led to some supply side fears among investors which further boosted prices. The price of oil increased by over $1 a barrel, reaching as high as $91.95 before staging a downward correction and stabilizing at $91.45.

Source