FXstreet.com (Barcelona) - U.S. markets have opened Tuesday's session with losses as lower than expected quarterly earnings by Alcoa have dampened risk appetite. The Dollar remains rangebound against Euro and Pound and dropped against a stronger Yen.
Dow Jones Industrials Index drops 0.3%, while the Nasdaq Index dips 0.7% and the S&P Index declined 0.6% in the first hour of trading.
In the macroeconomic front, U.S Trade deficit widened 9.7% in November, to $36.40 billion, from $33.2 billion deficit in October, which has been upwardly revised from the $32.95 billion previously estimated. November's deficit has surpassed experts' expectations of a trade gap of about $34.7 billion.
Yen strengthens as risk appetite drops
USD/JPY decline from 93.75 high on January 7 has extended on Tuesday as the Dollar dropped about 135 pips so far, from session high at 92.45 to 91.10 low (Dec 24 low), giving away all the ground taken last week.
EUR/USD remains trading in a range between 1.4450 and 1.4520 high, after rally from Friday's low at 1.4260 was capped at 1.4556 high on Monday.
GBP/USD returned to the upward path on European session after bouncing at 1.6060 although the pair has stalled at 1.6160/70 area, right below yesterday's high at 1.6195.