EURUSD rebounds slightly from record low

The EURUSD rebounded slightly on Monday from an 11 1/2-year low, as the fall in oversold areas encouraged some purchasing on hopes the single currency will do some upside correction.  

The euro dropped for a seventh straight session on Friday, while posted its third weekly loss last week, as ECB President Mario Draghi said the bank may extend its bond purchases beyond September 2016, if deflationary pressures persist.

Analysts predict the pressure to continue on the euro as the ECB started buying bonds on Monday, reminding that the purchases will amount to 60 billion euros each month.

Also, worries regarding Greece may add further pressure on the common currency, as the Hellenic country prepares to present its reform plans in Brussels to avoid running out of cash.

Eurogroup Chairman Jeroen Dijsselbloem has urged Greece to "stop wasting time" and start its reform plans.

The dollar saw some pressure from profit taking by investors, following Friday’s report, which signaled American employers added 295,000 jobs in February, compared to analysts’ forecast of 240,000.

For the moment, analysts’ forecast the Fed would raise interest rates earlier than market expectations after the remarkable progress in the U.S. labor market data. 

With the clear divergence in monetary policy between the Federal Reserve and the ECB, the single currency is likely to extend its losses.