The euro trade in range against the dollar

The euro appreciated against the US dollar on Monday as the single currency tested offers around the $ 1.3705 level and was supported around the $1.3605 level. Data released in Germany saw January industrial production climb 0.6% m/m and 2.2% y/y. Also, the EMU-16 March investor confidence index improved to -7.5 from -8.2 in February but these data still indicate pessimism among investors.
The yen depreciated versus the U.S. dollar as the greenback tested offers around the ¥90.70 level and was supported around the ¥90.15 level. There is increasing speculation that Bank of Japan will ease monetary policy further as deflationary pressures worsen. Some BoJ-watchers believe the central bank may expand a ¥10 trillion credit program for lenders when the Policy Board convenes next week. Data released in Japan overnight saw the January current account balance print at a stronger-than-expected ¥900 billion. The euro moved higher against the yen as the single currency tested offers around the ¥123.90 level and was supported around the ¥122.80 level. Meanwhile, the British pound moved lower versus the yen as sterling tested bids around the ¥135.65 level.
The sterling declined against the US dollar as reached levels around 1.5020 on downside and was taped around 1.5180 from upside. The British pound advanced against the euro as reached levels around 0.9070 and was supported around 0.8995.