FXstreet.com (Barcelona) - Stocks around the globe have posted considerable losses on Tuesdays on concerns about the health of the financial crisis, at the same time, Wall Street has opened the session with losses above 3% while oil has traded lower as global demand is expected to decline due to economic recession.
Wall street has opened with losses above 3%; Dow Jones is 3.30% lower whole S&P fell below the 800 points on a 3.97% decline, and the Nasdaq technological index fell 3.65% in the first hour of trading. Previous to the markets opening, NY Fed Manufacturing index has dropped to record lows.
Risk aversion has taken over the markets and USD has soared across the board, while gold prices have risen to six month high at $963 an ounce.
USD has been favoured by fear soaring against the Euro, EUR/USD has dropped about 200 pips from 1.2760 to as low as 1.2580. At the moment the Euro is trying to consolidate above 1.2600.
The USD/CHF broke 1.1745 resistance and now it is to rise some pips short of 1.1780 line, daily maximum before returning to the 1.1740 area, while the USD/CAD rose up to a critical resisttance area at 1.2630/50 the upper limit of the triangle pattern it has been trading for the last weeks, breaking the aforementioned area could bring the USD/CAD two the 1.30 level.
GBP/USD has consolidated in the area between 1.4230 and 1.4275, while the USD/JPY has found support at the 91.60 level.