FXstreet.com (CÃ³rdoba) - U.S. and European markets fell sharply on the first day of September. The Dow Jones Industrial Average fell 1.98% and the Nasdaq 2%, ending below 2000. Crude-oil also plunged falling more than 2%. News about an expansion in the manufacturing sector for the first time in 18 months did not boost stocks. The Dollar and the Yen rally on risk aversion.
EUR/USD tumbled form 1.4300 to 1.4176 in a few hours. The Euro then recovered and rose above 1.4200, finding resistance at 1.4225. The pair ended the day with a decline of 0.80%, the worst daily loss in almost a month.
GPB/USD collapsed on Tuesday. The pair fell to 1.6111 posting a fresh 7-week low. Currently the pair is holding above key level at 1.6150. During the Asian session Cable managed to rise, testing August 28 highs at 1.6370 but then, as markets started to tumbled, weakened and fell below 1.6200.
The Yen rose across the board. USD/JPY failed to break above 93.30 and weakened. At the last hours of normal operations in Wall Street the pair broke below the support zone at 92.90 but only fell a few pips and now is back above the mention support.