FXstreet.com (Barcelona) - US markets have opened Wednesday's session with declines close to 1.0% on the back of downbeat housing starts figures for December. In Forex markets risk aversion continues pushing the Dollar higher across the board.

Dow Jones Industrials Index drops 0.95% while the Nasdaq and the S&P Indexes are both going through declines by about 1.1% in the first minutes of trading.

On the macroeconomic front, U.S. Housing Starts declined 4.0% in December to a seasonally adjusted rate of 557,000 units, well beyond markets expectations of a 0.2% decline, while building permits increased by 10.9% to a seasonally adjusted rate of 653,000 in December.

Furthermore, PPI data showed that inflation remains tame, with producer prices 0.2% up in December on oil prices, as the Core PPI remained flat.

The Dollar continues strengthening

EUR/USD decline from from 1.4415 high yesterday has extended below 1.4215 support on Asian session to a fresh 5-month low at 1.4115, giving away already, 300 pips on the last two days.

USD/JPY decline from 91.35 has held above 90.80 support, and the pair has bounced up sharply at US session opening to reach levels past 91.35 hitting a fresh week high at 90.42 at the moment of writing.

GBP/USD retreat from 1.6460 high on Tuesday has extended during European session, to levels below 1.6300, and the pair hit 1.6240/50 support area, before picking up and attempt to return above 1.6300 at the moment of writing.