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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
FXStreet (San Francisco) - Currency market performed a bounce day on Tuesday as USD advance against Yen and Euro but decline against the Pound. Trading was significantly quiet following Monday's storm but overall JPY crosses traded higher.

Jamie Coleman called it 'Risk aversion reversion' in a recent piece. He stated that 'lessening risk aversion was the theme of the Tuesday session as JPY crosses benefited from steadier world equity markets and firmer emerging market currencies.'

The EUR/USD declined after Monday's bounce. Tuesday was the seventh decline in the last eight days; however the pair remains pegged at 1.3500. The EUR/USD closed at 1.3515. Hourly chart is pretty neutral; however the bearish stance appears in the 4-hour timeframe.

The GBP/USD bounced from 1.6255, lowest since December 17 to post gains in the day and to close at 1.6325. Now the pair shows a slightly positive tone ahead of the Asian opening.

The USD/JPY recovered more than half of Monday's losses and after a strong bounce from 100.75, as the pair defended the 100.60 area successfully and it closed at 101.65.

Main headlines in the American session:

Fed's Lacker: QE taper to continue despite sluggish growth prospects

Dijsselbloem confirms reports that Greece may need more aid

US: ISM New York Index edges up to 64.4 in January

US: Factory Orders fall by 1.5% in December

Greece to require third bailout of €10-20 billion

Wall Street gains on a dead cat bounce day
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