EUR/USD (a 4-hour chart)
European stock markets were trading with growing on Monday, after two consecutive of falling. Auto and banking sectors helped the growing.
Yen finished trading higher against the U.S. dollar extending last week growth. Investors preferred this currency to others as a refuge from European market volatility. In addition, market participants have renewed their forecasts for the further Japanese yen falling against the dollar.
Trading volume was low due to the holidays in the U.S. and the UK in the beginning of the week. Last week the yen felt better than other Big Ten currencies. UBS analysts say that
Hedge funds sold the dollar and the euro against the yen, and asset managers closed some short positions in yen. This has contributed to the growth of the Japanese currency as well.
Stoxx Europe 600 rose by 0.2% to 303.89, after two straight sessions of losses. The index closed down 1.7% last week, offsetting four-week winning streak.