Session Recap: Mixed USD, EUR/USD holds gains, GBP/USD & USD/JPY collapse

FXstreet.com (San Francisco) - The US Dollar picture was kind of weird on Monday as the worldwide reserve outperformed the GBP while collapsed against the Japanese Yen. The Euro was surprisingly quiet.

Stocks declined the most in nearly 2-months as investors were worried about the corporate earnings season and taper talks after Friday's upbeat unemployment rate. Commodities declined hard too.

In this framework, the EUR/USD is still digesting Friday's data with the pair consolidating recent gains around 1.3670. The pair seems to be well supported by the daily ascendant trend line coming from July low, today around 1.3570, despite short term is still unclear.

The GBP/USD declined hard on Monday with the Cable being unable to hold above 1.6500 and tumbling below 1.6400. GBP/USD closed at 1.6380. The USD/JPY also collapsed in the first day of the week as the pair declined more than 100 pips to close at 1.0300.

Main headlines in the American session:

EU's Dijsselbloem: European banks to fully regain health by the end of 2014

">Spain’s economy minister sees Q4 GDP growth at about 0.3% vs -0.3% private forecasts

US posts larger surplus than expected in December

S&P and Nasdaq biggest decline in 2 months on earnings and taper