Falling equities, weaker US economic data and fear of larger than expected rate cuts by the ECB and the ECB later this week kept the pressure on the majors today as GBP, EURO, Swissy and CAD gave back recent gains. Traders note stops were part of today's trade but thin conditions remained a contributing factor likely making the moves a bit bigger than would normally be the case. Analysts are now expecting a full 100 BP rate cut by the BOE on Thursday this week and traders sold GBP across the board today.

GBP fell through support at the 1.4950 area finding stops for a low print at 1.4805 before profit-taking by the shorts lifted the rate back to the 1.4900 area. GBP likely pressured EURO lower as well today but the more than $5.00/BBL drop in Crude Oil put the EURO on the defensive today. Low prints at 1.2581 are well above key support around the 1.2480 area and traders note that thin conditions likely would have exaggerated ranges today but the EURO remained fairly well supported to end above the 1.2600 area. USD/JPY was pressured by weak equities today and more losses are expected. Low prints at 93.04 are above the October lows but stops were in size traders say around the 93.50 area; high prints at 95.59 went unchallenged during US trade today.

USD/CHF rallied but failed to make a new high and remains below resistance around the 1.2380 area; low prints at 1.2018 during US trade is on support in my view. Traders note that a close under the 1.2020 area likely to inspire additional pressure on the rate. USD/CAD high prints at 1.2529 failed to find large bids and the larger range may suggest more two-way action on the way; low prints at 1.2303 are under key S/R at 1.2425 area. If the rate can close under the 1.2425 area the rate will likely suffer a pullback. In my view, the USD is range-bound between large S/R levels and the majors will continue to suffer two-way action near-term.

Should equities drop again overnight I see the USD/JPY finally reaching a double-bottom around the 92.60 area; additional USD strength in other pairs likely to stall at existing end of ranges as the underlying fundamentals are just dismal for the USD.

Today's US Dollar Trading
• USD holds gains against most pairs
• USD/JPY drops to low 93's
• US data dismal, volumes drop

Overnight Preview
• Look for follow-on selling of USD/JPY on weaker equities
• USD still inside larger ranges

Looking Ahead to Tuesday
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Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com