FXstreret.com (Barcelona) - U.S. markets are trading lower at opening times as optimism has been slammed by gloomy housing figures. Furthermore, Fed Bullard's dovish comments have weakened the Dollar, which has declined to session lows against Euro.

Dow Jones Industriasl Index sheds 0.55%, while the Nasdaq Index dips 0.8%, and the S&P Index declines 0.5% in the first hour after the opening bell.

On the macroeconomic front, U.S. housing starts declined 10.6% in October, to an annual rate of 529,000 units, against market expectations of a 1.7% increase, while building permits, a gauge to assess the trend of construction activity for the coming months, have declined 4.0% in October, to an annual rate of 552,000 units.

Furthermore, St Louis Fed's James Bullard affirmed that the Fed could keep interest rates on hold until 2012, and the dollar suffered a sudden bearish reaction against its main rivals.

Dollar gives away Tuesday's gains

EUR/USD bounced at 1.6805 low on Tuesday and rallied during Asian and European sessions although it has been capped at 1.4975, right below 1.5000 psychological resistance.

GBP/USD rose during European session to hit an intra-day high at 1.6845, and the pair has weakened during U.S session to intra-day low at 1.6755 (Nov 17 low), which is being tested at the moment.

USD/JPY retreat from 89.55 high on Tuesday, has held above 89.00 support, and the pair has remained moving between 89.00/05 and 89.30 on the upside for most of the day.