FXstreet.com (Barcelona) - U.S. stock markets are going through gains on Wednesday's session for second consecutive day as Banks shares continue bouncing of from low levels; Euro and Pound are stepping back after respective rallies during European morning session, while the USD/JPY drifted somewhat lower.
Stock markets extended gains on Wednesday with Banks shares heading the recovery, with Citibank growing above 9.2% on the back of Geitners plan to use capital injection to help lenders to get rid of distressed securities.
The Dow Jones Industrial Index is gaining 0.29%, with the S&P index 0.67% up and the Nasdaq index 1.16% up in the first two hours of trading.
Euro and Pound step back
EUR/USD has rallied to a maximum of 1.2810, some pips short of intra-week high at 1.2820, from intra-day low at 1.2616 reached ahead of the European session. At the moment the Euro advances towards next support level at 1.2727. Indicators remain bullish and, the pair could attempt another test to 1.2810.
GBP/USD has rallied through 1.3805, reaching an intra-day high at 1.3838, but the Sterling could not hold the level and has reversed direction, advancing towards 1.3650 intra-day low.
USD/JPY: Dollar ha s dipped further on its retreat from yesterday's high at 98.90, and the pair has broken 98.26 intra-day low reaching next support level at 97.90.