FXstreet.com (Barcelona) - US markets have opened Tuesday's session on a moderate bid tone as advances on health care stocks have offset loses on the financial sector after disappointing earnings by Citigroup. In FX markets the Dollar has advanced on grim economic data.
Dow Jones Industrials Index advances 0.33% while the S&P Index rises 0.7% and the S&P Index trades 0.7% above its opening level in the first ours of trading.
On the macroeconomic domain, US TIC have shown that foreign demand for US assets rose in November, with Net foreign long-term securities purchases increasing to $114.5B in November, from $ 6.9 billion in October, reaching the highest level since May 2007.
Earlier today, German ZEW Economic expectations Index dropped to 47.2 in Jan from 50.4 in Dec, which triggered a sharp decline on the Euro.
In the UK, the CPI accelerated to a 0.6% monthly increase and a 2.9% year on year advance. The Sterling rose tio a 6-week high on speculation of a rate hike by the BoE and dropped afterwards, when Wilkinson discarded the idea of a rate hike based on inflation data.
Dollar advances on weak economic data
EUR/USD recovery from Monday's low at 1.4330 has been capped at 1.4415 on early European session, and the Euro plunged to levels below 1.4300 hitting a session low at 1.4260 weighed by Greece's woes and the deterioration on the Zew econiomic sentiment index.
GBP/USD rally from Jan 7 high at 1.5895 has extended to a fresh 6-week high at 1.6460, but the pair pulled bqack afterwards to 1.6310 low, although it has, ever since, trimmed losses, reaching to levels around 1.6375 at the moment of writing.
USD/JPY retreat from Jan 7 high at 93.70 has reached key support at 90.30 (38.2% Fib retracement of the Nov-Jan rally), and the pair has bounced up to levels past 91.00, reaching session high at 91.10 so far.