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Session Recap: Some risk aversion but majors keep the range

FXStreet (San Francisco) - News from China fueled risk aversion across the market; however majors remained trapped in its previous range. The Dollar posted some gains versus pound and euro but declines against the yen.

Stocks extended losses on Tuesday as disappointing earning reports added pressure to the indexes. The gold advanced to test the 1,350 area again but copper and oil traded under pressure.

The EUR/USD declined to 1.3830 overnight but the pair managed to recover ground in the American session to price highs of the day around 1.3875. "In the 4 hours chart, indicators also stand around their midlines, halting their slide from overbought territory, yet giving not much clues on upcoming direction," says FXStreet's chief analyst Valeria Bednarik. "For the most the pair remains bullish, albeit a clear break above 1.3910 is now required to confirm a new leg up."

The GBP/USD fell for third day to test the 1.6600 area. In the last three session days, the cable lost around 200 pips from 1.6790 on Friday to bounce at 1.6600 today and close the day at 1.6675.

Main headlines in the American session

US Wholesale Inventories beat expectations (0.4%) in January: 0.6%

NIESR GDP estimate for three months ending in Feb 0.8% vs 0.7% prior

Copper breaks support to lowest since 2010

The Bank of England burns the recordings of its meetings

Wall Street closes down amid China concerns

EUR/JPY ends below 143.00

The EUR/JPY fell on Tuesday and finished below 143.00, the lowest close since last Wednesday
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AUD/NZD breaks below 1.0600

The AUD/NZD posted the third consecutive daily loss and closed at the lowest level since January 24 amid a weak Australian dollar that was among the worst performers on Tuesday.
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