FXstreet.com (Barcelona) - Following previous sessions, stocks tumbled in America with Dow Jones industrial Average losing 230 points, almost a 3% quickly in the first 90 minutes, sinking to 3 months lows.
By the time of this report, the fall remains under 260 points and with no signs of recovery. In the mean time, Oil prices fell below $35 a barrel, while gold prices jumped to a fresh 7-month high, amid concerns of weaker demand and higher stocks of energy and increased safe-haven buying. Risk aversion continues lifting dollar up against major rivals.
The EUR/USD has fallen more than 200 pips on Tuesday, breaking the 1.2600 support level and advancing towards next resistance at 1.2510 area as worse than expected manufacturing data in the U.S. seems to have increased risk aversion and favored the USD as safe haven.
The Pound has reached the 1.4300 resistance level supported by the better than expected UK January Inflation data, but the movement was not enough strong and the pair begun to fall slightly in the American session to move around the 1.4200 level.
The USD/JPY has been moving in sideways despite the US stocks market losses. The uptrend looks strong, today the pair have risen from 91.54 to the 92.75, reaching the maximum since January 8th and pointing to the 95.65 resisstance, 2009 maximum.