FXstreet.com (Barcelona) - U.S. stock markets are rallying on Tuesday on renewed confidence in banks, the Euro and Pound have rallied at the opening while the Dollar declined against the Yen.
Wall Street is going through gains above 3.75% after the first hour of trading on the back of better than expected Citigroup profit outlook, which has spread the feeling that the worst of the banking crisis is over. Dow Jones is going 3.75% up, while the S&P Index has increased 4.19% and the Nasdaq is posting gains by 4.65% so far.
On the macroeconomic domain, absence of relevant data, with just U.S. Wholesale inventories declining less than expected in January.
Euro slightly up, Pound, back and forth
Euro rallied about 100 pips against the Dollar, and after breaking resistance levels at 1.2727 and 1.2755, has reached 1.2810 (Feb 26 high). Rejected by the 1.2810 level, the Euro has returned above 1.2755.
The pound has gone through a choppy session, the pair has rallied 1.3900 resistance level, but failure to break above here, has driven the Pound through 1.3850 support level. At the moment the Pound remains below 1.3850, and above support line at 1.3755.
The USD/JPY has been trading in range between 98.00 and 98.50.