Trading on the Euro/dollar currency pair in Europe continues to slide from its Asian maximum of 1.1021. It's been experiencing some additional pressure from the EUR/GBP cross. At the time of writing this review, the Euro has fallen against the greenback to 1.0940. If the daily candlestick closes below this level, it will open the road for sellers towards 1.0920.
It's also worth remembering that a strong NFP report came out in the US on Friday, which was ignored at the time due to the presidential elections that were about to take place in France. As such, 1.0920 is not the last support level we'll see.
The GBP/USD rate has fallen to 1.2960 after an unsuccessful attempt at renewing the morning's maximum of 1.2988. Should the rate fall below 1.2945, pressure on the British pound will increase. The next target level for buyers is at 1.2924 level.
For Monday, the economic calendar is bare. It's worth noting that after the presidential election in France, traders are correcting their previously opened positions; selling Euros and pounds and buying Yen and gold. As of yet, it's not entirely clear why this is. Surely it must be a reaction to the fall in US bond yields.
It's also worth keeping in mind the growing probability of the US Fed increasing interest rates in June. According to CME Group's FedWatch, the probability of a rate hike in June has risen from 78.5% to 83.1%, in July from 80% to 84.4% and in September from 87.6% to 91.2%.
During the US session, speeches are expected from the heads of the Fed in St. Louis (James Bullard) and Cleveland (Loretta Mester).