Pounds 2 Rupees

A valuable tool used by experienced traders is a table of the biggest moving currency pairs over a designated period of time.

The Swiss National Bank reaffirmed its stance that it will prevent excessive Franc appreciation following its last policy meeting, where members voted to leave the target interest rate unchanged at 0.25%. However, the central bank did raise its outlook for inflation and growth which along with continued risk appetite has helped fuel a Franc rally. The USD/CHF is currently testing staunch support levels which could see bearish conviction wane with the looming threat of intervention, creating an ideal scalping environment.

A range bound market is noted by a number of moves between two similar price points.  The 4-hour chart of the EUR/USD is a good example of a market in a range. 
 

Improving growth trends has started to generate concerns that rising prices will soon follow forcing policy makers to abandon easy policy. This week’s calendar will provide evidence as to whether inflation is a growing issue with consumer price reports from the Euro-are, United States and Canada. The FOMC rate decision will be the marquee event as monetary policy in the world’s largest economy has far reaching implications. A change in rhetoric from policy makers could create a new paradigm for the dollar. U.K. employment figures and the BoE policy meeting minutes crossing the wires at the same time could set a new trend for the Pound.

Instead of posting a chart today, I thought I would show some important economic releases that will take place this week.

Currencies have been in the process of consolidating recent moves, with most tracking lower against the buck in early trade Monday.

The Euro halted the three-day rally against the greenback and slipped to a low of 1.3706 during the overnight trade, and the single-currency may face increased selling pressures going into the U.S. session as investors scale back their appetite for risk.

Don't worry about 2010 growth: We continue to forecast solid, above-consensus global GDP growth of 4.4% this year - despite growth downgrades in Europe, a weaker 1Q in the US (largely weather-related) and the recent softening in the China Manufacturing PMI (reflecting Chinese New Year seasonality, in our view).

Spyros Andreopoulos, Joachim Fels & Major Pradhan, Global Economics Team, Morgan Stanley

Crude oil may decline amid fading risk appetite after China's Prime Minister warned his country may suffer a "double dip" while gold and silver track lower amid firming US interest rate hike expectations ahead of this week's FOMC announcement.

Friday’s close above 1.3700 strengthens the case for the formation of a short-term bottom, but it is 1.3800 that now becomes the key level to watch above.

The US Dollar gained against most major currencies in Asian trade with safe-haven flows boosting demand for the greenback as stocks declined after China’s Prime Minister warned that his country may experience a “double dip” this year.

Currencies have been in the process of consolidating recent moves, with most tracking lower against the buck in early trade Monday.