FXstreet.com (Barcelona) - U.S. stock markets are going through moderate losses on Tuesday after Monday's rally, as financials retreat on Geithner's call for stronger regulation; Euro and Pound have bounced from support levels after declines ahead of the U.S. opening times.
The Dow Jones Index is going through losses by 0.62% two hours after the opening, while the Nasdaq Index drops 1.34%. banks and Financial firms have dropped as Geithner announced the details of the toxic assets purchase plan, while the decline on oil and gold has weighed on commodity firms.
On the macroeconomic front Richmond Fed Manufacturing Index rose to a level of -20 in march from -52 in Feb; while Housing Prices Index rose 1.7% in January instead of the 0.8% decline forecasted by the market consensus.
Euro and Pound bounce up
GBP/USD has bounced back strongly from the 1.4650 support level tested at the session opening times, advancing about 80 pups higher to trade around 1.4725 at the moment of writing. On its way up, the Pound could meet an apparently strong resistance level at 1.4760.
EUR/USD decline from 1.3680 intra day high has found support at 1.3500 during the U.S. trading session, and the pair has remained within the flat channel of the last four days. At the moment the Euro is trying to climb towards previous intra-day low at 1.3615, although 100 SMA is acting as resistance at 1.3580 in the hourly chart.
USD/JPY remains moving within a narrow range,from 97.70 to 98.40.