EUR/USD reverses early gains to one-month high, Draghi in focus
The EUR/USD pair reversed all of its early gains to over one month high level beyond 1.0700 mark and turned mildly negative during early European session.Currently hovering around 100-day SMA immediate support, near the 1.0675-70 region, a modest greenback recovery seems to be key factor for the pair's retracement from the highest level since Feb. 7. In fact, the key US Dollar Index has bounced off sub-101.00 mark and seems to have prompted some profit taking following the pair's recent up-move of nearly 200-pips in just three trading sessions.However, a follow through retracement in the US treasury bond yields, led by disappointment from a tepid average hourly earnings growth, seems to have limited any further sharp downslide for the major. Moreover, a Bloomberg report on Friday that revealed the European Central Bank (ECB) had discussed whether it could raise interest rates before ending its monthly quantitative easing program also seems to be lending some support to the shared currency. Hence, investors will remain focused on ECB President Mario Draghi?s speech, due later on Monday. However, persistent political uncertainty, in wake of the upcoming Presidential election in France, seems to hold investors back from initiating and holding long-Euro positions. Meanwhile, repositioning trade, ahead of this week's key event risk - the FOMC meeting, might continue to fuel volatility and provide some impetus for short-term traders.Medium- term we are overbought....this is on the daily charts 60 mins also overbought...so we could see a retrace back to 10620 area and this is where we can go in and buy the Eu-ro....stops will be tight...below 10580 and we are out looking for 10520 where we are going in once more...Now as I said retracement should hold 10620/10580...below here there is scope for us to trade lower"

GBP/USD spikes to multi-day tops and retreats, holds above 1.22 handle
The greenback extended post-NFP corrective slide, helping the GBP/USD pair to surge through the 1.2200 handle. The pair, however, quickly retreated few pips from multi-day tops and is currently trading around 1.2215 region. Despite of an upbeat headline NFP print, showing the US economy added 235K new jobs in February, market participants seemed disappointed by dismal average hourly earnings growth, at 0.2%, and triggered a short-covering bounce for the major. A modest pull-back in the US treasury bond yields have also been supportive of the US Dollar corrective move as market participants continue to reposition ahead of this week's key event risks.This week's important market moving events / releases include - the FOMC decision and UK employment details on Wednesday, followed by the BoE monetary policy decision on Thursday. Meanwhile, possibilities of some stops being triggered, on a sustained break through the 1.2200 handle, could have also collaborated to the pair's sharp spike in the past hour or so.Monday's key focus would be a yet another debate on the Brexit bill, where MPs are expected to reject the two changes made to the Brexit bill in the House of Lords and clear the UK PM Theresa May's intent to trigger Article 50 by the end of this month.In absence of any other major market moving economic releases on Monday, the pair remains at the mercy of broader market sentiment surrounding the greenback and the US bond yield dynamics.Bulls would be eyeing for a follow through buying interest beyond 1.2240 level, above which the pair is likely to aim back towards reclaiming 1.2300 handle. On the flip side, retracement back below the 1.2200 handle, leading to a subsequent weakness below 1.2165 horizontal support, would negate prospects of any further recovery and turn the pair vulnerable to head back towards 1.2100 round figure mark.

USD/JPY flat-lined near 114.70, awaits Fed confirmation
The USD/JPY pair extended retracement from Friday's multi-week highs and dropped farther below the key 115.00 psychological mark.Currently trading around 114.60-70 region, the pair traded with bearish bias for the second straight session and reversed nearly 100-pips from Friday's 7-week tops as traders preferred to l0ck-in some profits ahead of this week's key event risk - the two-day FOMC meeting starting on Tuesday. The pair, however, has managed to bounce off lows as disappointing core machinery orders and tertiary industry activity data from Japan, seems to be weighing on the Japanese Yen and helping the pair to defend mid-114.00s for the time being.Investors now await an eventual Fed rate-hike action and an update on the central bank's economic projections before determining the pair's next leg of directional move. With an empty US economic docket, the US Dollar price-dynamics would remains a key determinant of the pair's movement on the first day of a new trading week.A follow through retracement below 114.40-35 immediate support is likely to accelerate the slide towards 50-day SMA support near the 114.00 handle. Below 114.00 mark, the corrective slide could get extended towards 113.75-70 area ahead of 113.20 important support. On the upside, the 115.00 mark now seems to act as immediate resistance, above which the pair is likely to aim back towards 115.50 resistance area. Momentum above multi-week highs resistance now seems to pave way for additional up-move for the pair towards 115.75 intermediate resistance, en-route the 116.00 handle.

US Dollar weaker, braches 101.00
The sell off around the greenback remains unabated on Monday, with the US Dollar Index now probing fresh lows in sub-101.00 levels.The index is losing ground for the third session in a row at the beginning of the week, extending the rejection from last week?s tops in the 102.30 region to today?s multi-day troughs below the critical 101.00 support.The offered bias has gathered extra traction on Monday despite Friday?s solid reading from US Non-farm Payrolls showed the economy added 235K jobs during February, although wage inflation slowed its pace.USD remains unable to regains some buying interest as market participants seems to be sceptical about the ability of the Federal Reserve to hike three times this year as projected in December. On this regard, however, the latest survey by news agency Bloomberg showed economists expect the Fed to effectively raise rates three times in 2017.Further data regarding the buck showed the speculative community added more contracts to the net long position in the week to March 7, taking them to 8-week tops along with rising Open Interest, all according to the latest CFTC report.In the data space, the Fed?s Labor Market Conditions Index is only due later today (1.3 prev.)The index is losing 0.36% at 101.01 facing the immediate support at 100.86 (low Mar.13) followed by 100.80 (100-day sma) and finally 100.64 (low Feb.24). On the other hand, a breakout of 101.21 (55-day sma) would open the door to 101.34 (20-day sma) and then 101.98 (high Mar.10).

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