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Session Recap: Just a correction; EUR/USD back to 1.2420

FXStreet (San Francisco) - The so-called rebound of the EUR/USD was really short lived as the pair got a rejection at 1.2500 where the bulls took control again and sent the pair to 1.2420. The same story against the British pound and the yen as dollar bulls regained positions.

It was a quiet day in the currency market when compared with previous sessions. Overall the USD improved its tone after digesting nonfarm payrolls on Friday. Oil prices put pressure on commodity-related currencies, while gold resumed its downtrend.

On the other hand, US stocks market closed positive on Monday as investors digested earnings corporate and healthcare shares and despite pressure on energies. The Russell 2000 jumped to 4-month highs while the Dow and the S&P hit record highs.

The EUR/USD resumed its decline after the rebound on Friday as the pair received a rejection at 1.2500 before closing the day at 1.2415 lows. According to Valeria Bednarik from FXStreet, "further slides below the 1.2400 figure are required to confirm a stronger slide, thus a recovery above 1.2440 will leave the pair mostly range bound, contained by 1.2520 price zone."

The GBP/USD was unable to maintain prices above 1.5900 against the US dollar and after testing daily highs at 1.5915, the pair fell and closed at 1.5840. Interest rate differentials are playing in the pair as investors are confident that the Fed will increase rates before the Bank of England. A lower unemployment rate in the US, while a deflationary environment in the UK feed speculation.

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