CMS Forex - The greenback gained in NY trading Tuesday despite lower-than-expected US consumer sentiment and continued weakness in the US housing market. The yen and Swiss franc fell as US equity prices rose increasing demand for carry trades. The dollar block currencies declined as oil and gold prices were lower. Sterling fell on dropping UK mortgage approvals.
The EUR/USD fell after weaker-than-expected German consumer confidence indicated the US economic slowdown is spreading to Europe. The pair is likely to test the 1.57-handle support. If it is broken, the pair will possibly fall to 1.54.